Owning Competitive Franchise Systems: Risks And Rewards

Law360, New York (March 21, 2014, 12:36 AM EDT) -- Franchise systems have been, and continue to be, sought-after investment and acquisition targets. As a result of this, the demand for ownership of franchise systems often exceeds supply. In fact, there has been almost a frenzy of recent franchise system purchases across various industries from food, to retail, to hospitality, and more.[1] As the number of these purchases increases, so does the likelihood of multiple brands in the same industry being operated by the same (or an affiliated) entity. For example, in the hospitality industry:...
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