Again, franchise agreement renewal is not automatic or assured. Do you know what you’ll do if your contract isn’t renewed? It can be complicated for former franchisees to move onto new business ventures for a number of reasons. First, running a business is a significant commitment and requires hard work and long hours. The effort franchisees put into their franchise businesses is hard to move on from, so there is an emotional and psychological barrier for many franchisees.
Other potential barriers can be found in your franchise agreement, including non-compete clauses and lease takeovers. If you operated a gym franchise and discovered your passion for the fitness industry, your contract may prevent you from owning or even working for a different gym franchise. Further complications can arise if the franchisor is contractually allowed to continue operating in the retail space that you leased, meaning you would have to find a new location for your next business venture.