Starting a Business

What are some considerations when buying a franchise?

Many people dream of being an entrepreneur. Startups in the tech sector are all the rage and creating an online store has never been easier. But another route to running business on your own is to purchase a franchise.

 

By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success. There are strong contracts in place that should be considered fully before investing in a franchise.

What is a distributorship?

A distributorship is an arrangement where the manufacturer makes its money on the sale of the actual goods that are distributed rather than for the right to distribute the goods. Thus, a distributor normally doesn't have to pay fees for the right to distribute a manufacturer's products and/or services, unlike a franchise business arrangement. Distributorships fall under distributorship laws, as well as contract and other business laws. Distributorship laws vary from state to state, and they are very complex, which is why you should consult with an attorney before entering into a distributorship agreement.

How do I register a domain name for my online business?

Registering a domain name, or your website address, is an important step for your business. The first thing that you need to do is come up with a domain name that fits your business and that is not already registered by someone else. Then, you need to go to a trusted website that can register your domain name for you. If you have any questions about the validity of the site with which you are considering registering your name then you might check out the company’s reputation with the Better Business Bureau or seek referrals from other businesses who have established websites.

Why should I worry about business litigation?

If you run a business, chances are you either already are confronted with business litigation or will be in the near future. Almost all business people confront litigation or the threat of litigation in the course of their business, whether they are Fortune 500, small or medium size companies, closely­ held or family owned businesses, internet start­ups or individual entrepreneurs. Even though you may have protected your personal assets by forming a corporation or LLC, litigation may put your enterprise at risk.

When you are threatened with litigation, accept the fact that it will probably cost you money to solve the problem, even if you are right. Ignoring the problem won't make it go away, especially if you have been served with court papers or a notice or demand pursuant to a contract. And, failure to respond in a timely manner may cause you to lose your legal rights. Nothing can prevent you from being sued.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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