July 23, 2019 | Tips and Tools

Legal Considerations for Franchisors Expanding into Inner-City Markets

With suburban markets growing increasingly saturated, some franchisors have started exploring new opportunities for growth in inner-city markets.   Cheng Cohen attorney Michael Daigle and co-author Zack Iacovino recently published an article in the Franchise Law Journal analyzing some of the issues and challenges associated with expanding into inner city markets.

“The needs and desires of community residents can be unpredictable, and the barriers to entry are sometimes steep—governmental regulations can be cumbersome, and capital can be scarce. Nevertheless, expansion into these areas presents a tremendous opportunity for franchisors to tap into markets with enormous buying potential. To do so successfully requires a careful evaluation of the viability of the concept in a particular urban area along with flexible standards related to a number of different aspects of the franchise system, including operations, real estate, and training. To maximize success in these regions, franchisors must combine self awareness of their concept with a keen understanding of the unique characteristics of the local markets.”

Click here to download the article.  Reprinted (with permission) from the Franchise Law Journal (American Bar Association), 38:4 Franchise L.J. 513(Spring 2019).

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