Is It Time to Buy a Franchise?

When the economy slumps, franchising tends to become more popular. Here's what to know about the industry before buying in

Think buying a franchise means you get the benefits of owning a business without the risk of business failure? Think again. Without proper due diligence, franchisees can find themselves stuck in bad business models, chained to unfavorable contracts, or victims of fraud. Although the industry's reputation has improved in recent years (BusinessWeek.com, 4/12/05), franchising isn't necessarily safer than starting a new business.

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