Lets say I would own a game store right. That store is a franchise. Now is it illegal to open up your own and buy some of the same goods from the same source as set up for the franchise? The source for goods for the franchise are not branded towards the franchise, they are just a source.
2007-07-24 03:21:09 · 2 answers · asked by Jess 2 in Business & Finance ➔ Small Business
Just so yall know, this is hypothetical
And thank you for the answers
2007-07-24 03:32:13 · update #1
Why would you do that? You would have a lot of money invested in the Franchise - possibly ten's or 100's of thousands of dollars just fro the right of getting that Franchise in the first place. There are plenty of wholesale sources for getting video games and not have to own a franchise, BUT - you might not get as good a price as the franchises, because they can place larger orders. The only way you MIGHT make a living opening your own video game store nowadays is if you have no other video game or video rental stores within a 15 mile radius and you have at least $100,000 cash up front to get started and can go without a salary for 6 months or more. If you can do this, you MIGHT survive until one of the big chains/franchises moves into your territory with a better selection and better prices, then your business will go down the drain
2007-07-24 03:31:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Every franchise has a contract between the franchisee and the franchisor. Your contract probably says that you can't take their methods and proceedures and vendors and open up your own store to compete with them. So you'd be in violation of a contract, and it probably discusses the damages that you would owe them.
2007-07-24 03:28:39 · answer #2 · answered by hottotrot1_usa 7 · 0⤊ 0⤋