With more than 30 years of franchise law experience, national franchise attorney Jeffrey M. Goldstein is a skilled advocate for new and existing franchisees. Located in Washington D.C., the Goldstein Law Firm provides franchise review and dispute resolution services nationwide. Our firm exclusively represents franchisees and dealers, and we are committed to ensuring that our clients are treated fairly by their franchisors.
Key Risks Involved with Vending Machine Franchises
1. Your Initial Investment
Where will you get the money for your initial investment? Do you have the cash available, or will you need to consider financing? Should you withdraw from your retirement savings? Is a Small Business Administration (SBA) loan available?
2. Your Ongoing Royalty Payments
How much are the royalty fees? Will you be able to pay your royalties and still make a living from your vending machine franchise? What happens if you can’t make your royalty payments? Could you be liable for the franchisor’s “lost future royalties”?
3. The Franchisor’s Right to Terminate
When can the franchisor terminate your franchise? What happens to your machines (and your investment) upon termination? Will you be able to pursue another franchise opportunity; or, will you be restricted by a non-compete?
4. The Franchisor’s Lack of Accountability
What are your franchisor’s legal obligations under your franchise agreement? Are you entitled to advertising in your territory? Are you entitled to operational support? Can your franchisor make changes to its business and technology systems at will and require you to comply at your expense?
5. Costs of Dispute Resolution
What are your options if the franchisor breaches your franchise agreement? Are you required to submit your claims to mediation? Arbitration? Will you be required to travel to the city where the franchisor’s headquarters are located? Will you be on the hook for costs and legal fees?
These are just a small sampling of the potential legal and financial issues involved in purchasing a vending machine franchise. If you are thinking about buying a franchise, our franchise review and negotiation services can help mitigate your risk. If you are facing a franchise-related legal dispute, we can represent you in mediation, arbitration or litigation.
Top Vending Franchise Opportunities
Industry periodicals, including some online “best franchise” types of lists, identify the following leading vending franchise opportunities available as of 2017:
- Fresh Health Vending Café – A coffee vending machine franchise offering “exclusive coffee vending technology.”
- Healthier4U – A vending machine franchise offering healthy alternatives to traditional vending machine choices.
- IceBorn – An ice and water vending franchise offering patented technology and a “Fresh from the Source” product.
- KarmaBox – A healthy and earth-friendly vending machine franchise opportunity offering proprietary vending machines.
- Naturals2go – Another healthy vending machine franchise promoting part-time business opportunities.
Need a Franchise Lawyer? Call or Click for a Free Consultation
If you would like to discuss the legal risks involved with your vending machine franchise opportunity, contact the Goldstein Law Firm and schedule a free, no-obligation consultation. We serve prospective and existing vending franchisees nationwide. To speak with nationally-recognized franchise attorney Jeffrey M. Goldstein, call (202) 293-3947 or submit a request online today.
Disclaimer: The identification of any franchise or company on this website is not an endorsement of any aspect of that entity in any regard, nor should it be taken as one. In this regard, our inclusion of a franchise or company on our site is merely a note of the existence of that franchise or company in a particular industry, not an opinion or recommendation as to the past, current or future legal or financial viability or of that franchise company, franchisor, or its franchisees.