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Straight Talk on Buying Into Martial Arts Franchises
Category: Editorials, Startup
license - “a grant by the holder of a copyright or patent to another of any of the rights embodied in the copyright or patent short of an assignment of all rights”
franchise - “a right or license that is granted to an individual or group to market a company’s goods or services in a particular territory under the company’s trademark, trade name, or service mark and that often involves the use of rules and procedures designed by the company and services (as advertising) and facilities provided by the company in return for fees, royalties, or other compensation”
Over the last year or so, we’ve seen several martial arts franchises pop up in the industry. In fact, I even had one company approach me to write their operations manual for their school owners (And no, I didn’t write it).
John Graden of the Martial Arts Teacher’s Association told me he’s been approached for the exact same reason several times over the last couple of years by companies that were launching martial arts franchises.
Of course, we’ve been seeing the “cookie cutter” approach to martial arts schools for years. Many martial arts organizations have already been in the business of licensing their name, logo, business systems, etc. to their member schools and instructors. However, there is a huge difference between holding a license agreement to represent a style or system and entering into a franchise agreement with a franchisor.
For better or for worse (mostly worse, in my opinion) martial arts school franchises are here to stay. And while other martial arts business writers might disagree with me, I believe martial arts school franchises are a really bad idea for the the individual school owners that buy into them.
Here’s why:
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