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Is franchising in your future? 5 Key questions you need answered

Buying a franchise? Before you go into “business ownership” Here are 5 key essentials you need to know to protect your investment, your independence, and your long-term success.

1. Do You Actually Own What You Build?

It’s your business—so you should own the essentials, right?.

• Do I own my phone number, business name, customer list, social media accounts, and website?

Many franchise agreements claim ownership over everything, even your local followers. If you ever leave, you will lose it all—along with your ability to market to your existing customers. Always clarify what assets are truly yours and what the franchise controls.

2. Can You Stay in Business If You Leave? (Non-Compete Clauses)

Most franchise agreements include non-compete clauses, which could stop you from working in your own industry if you part ways.

• If things don’t work out, can I keep doing what I’m good at—or will I be legally handcuffed for years?

A harsh non-compete can ruin your livelihood after you’ve spent years building it. Know exactly what you’re signing.

3. Are You Signing an NDA—And Why?

Some franchisors ask you to sign a non-disclosure agreement just to get the details about the franchise.

There are two types of NDAs.

• Some NDAs are standard for protecting trade secrets (These are reasonable in our opinion)
• Others are designed to silence negative feedback or prevent you from talking to existing franchisees. That’s a red flag. Don’t let “confidential” become “can’t ask questions.”

In addition, many franchise agreements include blanket NDAs that apply even after you’ve signed, essentially muzzling franchisees from ever speaking freely about their experience. This can make it difficult to get honest feedback and creates a culture of fear rather than support. If NDAs are baked into the agreement, you may always feel like you’re looking over your shoulder.

4. Are You Giving Up Legal Rights? (Forced Arbitration & Mediation)

Many franchise contracts include forced arbitration or mediation, meaning you can’t take legal disputes to court.

If I’m wronged, will I actually have a fair chance to fight it?

Pros:

• Arbitration can be faster and cheaper than court.

Cons:

• Often tilted in favor of the franchisor.
• You lose your right to a jury trial.
• Arbitration is private, meaning outcomes are confidential and don’t set any public precedent.
• The lack of transparency can reduce accountability and allow patterns of misconduct to go unchecked.

5. Can You Sell or Transfer the Business Without Their Approval?

You built it. You should be able to sell it—right?

• If I want to retire, relocate, or cash out, can I sell or pass down my business without the franchisor’s approval?

Many franchisors require approval for any sale or transfer—and they can even block the deal. That means you’re not in full control of your own exit plan. Don’t wait until you’re ready to sell to find out what the rules are. If you can’t sell it, do you truly own it?

Final Word: Be Smart Before You Sign

Franchising can be a powerful path to wealth—but only if you know what you’re getting into. These five questions will save you time, money, and future hurt,  headaches. Don’t just get sold on the brand. Protect yourself, ask these 5 hard questions, and make sure you’re walking into a partnership—not a minefield.

At American Hose Pro, we’ve seen both sides of the franchise world — the good opportunities and the tough realities outlined above. That’s why we created something different: the FAIRchise model. FAIRchise offers the support, systems, and tools you’d expect from a franchise, but without the long-term commitments, restrictive non-competes, and heavy-handed control over your business, brand, and future.

We aren’t here to bash franchising — it’s helped plenty of people succeed. But we believe there’s room for a better way. A partnership built on empathy, fairness, and opportunity where you truly own what you build and control where you take it next. If you’re someone who values hard work, freedom, and honest support, FAIRchise might be exactly what you’ve been looking for.