Attorney John E. Cereso Of Nevada Law Group Says 'With Caution A Franchise Can Be A Good Move In A Bad Economy'

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Cereso Shares Top 10 Legal Franchise Buyer Tips

“It’s a smart move to start up a franchise business or buy into an existing franchise during a bad economy. What is important are the decisions you make and your basis for them” warns Attorney John E. Cereso, who practices in franchise law with his Nevada Law Group and also co-owns Exardius Limited, a Franchise Consultancy. If you can’t afford a start-up company and investors are few and far between, an established franchise might be the best solution to financial independence.

Starting a franchise business can be a new business to you; however, you can benefit from the franchise’s knowledge, proven business model, marketing resources and leverage. The positive news is some of the leading franchise business brand names actually started up and flourished during a recessionary time. Another benefit of selecting a franchise opportunity, when compared side by side with regular businesses, could be the achievement rate of franchising. There are surveys that show an extremely high percentage of franchise business owners acknowledged they operate at a profit in any given year compared to the achievement rate of conventional new businesses, where only one in five achieve success outside three years of business. So there are good reasons to choose a franchise business even in a down economy.

“The good news is that opting for a franchise may be of help to scale back some elements of that danger and grant you the best potential chance of achievement," says Cereso. "Regardless though, there are pitfalls.”

“A franchise,” explains Cereso, “is the granting of the right to engage in a certain business with a particular trademark in a certain area.” It’s wise to be careful because this type of investment usually involves parting with thousands of hard earned dollars and entering into a long-term relationship with a company that is seeking to expand its brand and widen the distribution of its product or service.

What makes franchising different and often desirable is it allows you to purchase and run your own business as a franchise. It does not; however, grant you ownership in the franchise itself.

Move over David Letterman, here’s Cereso’s Top 10 List to avoid legal franchise pitfalls:

  • Read the entire FDD (Franchise Disclosure Document) – You must Know and Understand everything in it!
  • Be cautious when buying into a “new franchise” concept.
  • Make sure you know what entity is going to provide services to you.
  • Do your due diligence, Failure to properly investigate your franchise can be hazardous to your wealth!
  • Know your territorial rights.
  • Understand all of your fee structure.
  • If it’s not in the FDD, fugheddaboutit!
  • Have Insurance, the first necessary evil.
  • Create a liability shield.
  • Utilize professionals, such as lawyers and CPA’s.

John E. Cereso, Esq. started Nevada Law Group in 2005. Nevada Law Group provides a broad range of legal services with an emphasis on family law, criminal defense, estate and probate law, business and franchise law, personal injury, bankruptcy and entertainment law. For more information about the firm, please visit or call (702)-946-8100.

Exardius Limited was founded by John E. Cereso, Esq. and William Sherman in 2008. Exardius provides total franchise management solutions to new and existing franchises. Utilizing specialists in behavioral change through industrial / organizational (IO) psychology, Exardius provides not just general operations and management consulting, but proven methodology through customized selection systems, instructional design and delivery, performance management and quality assurance, just to name a few. For more information about Exardius, please visit or call (702) 946-8150.


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Tom Dietz