Did you know there are many cities who city councils and or planning commissions which frown upon franchises? It's true, and I think what you'll find is many resort communities want to keep everything upscale and they don't want franchises coming in and put in a plastic signs. They'd rather have upscale small businesses that are part of the community. In a way this is protectionism, but they justify it by saying they do not want to Wal-Mart their city or put fast food restaurants with drive-thrus in everywhere.
As a former franchisor, nothing upset me more than for a local city council to tell us that they would not approve our location because too many citizens were complaining because we were franchise company. To me that was just BS because we live in America and this is not Leningrad, Russia. Nevertheless, there are several cities that have ordinances on their books that no company is allowed to operate within their city limits if they have five or more outlets under the same name anywhere else.
That pretty much precludes all franchisors from selling in their city. One city like this is Arcata California. At first glance the town is a cool little college town with a well known universities. But as you learn more and more about the town you find out that is run more like a socialist-communist city, and even those on the city council will admit they are against capitalism.
Many of the people in the town are staunch environmentalist, and they really like it that way. Realize it is their town, but also realize that you are buying a franchise you'll have a rough road trying to get your location within the city limits, and I doubt you'll be able to get approved. This does not mean you can't put your business just on the other side of the city boundaries, as many of the brand-name locations have.
Still, before you buy a franchise you better check with your city and understand that even if there are no ordinances against it like there are in Arcata California, they may frown upon it and give you an awfully hard time trying to get your permits approved. In fact this could run you through all your capital and initial cash flow.
In essence putting you behind the eight ball before you ever start your business in the first place and causing you to fail. Believe me, as I have franchised my company in 23 states serving some 450 cities. No, it's not typical at all, but it happens often enough to cause alarm. Therefore, I want you to please consider this if you are going to buy a franchised business of your own.
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