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Popular franchise expands by 3,000 locations

A few weeks ago we posted about how Starbucks acquired specialty tea brand Teavana. Now, they are changing their business model even further by adding 3,000 new locations across the globe in the next five years. The coffee magnate is also planning to renovate numerous existing stores.

An area the company is looking to expand in is in the Asia-Pacific region, where Starbucks hopes to have 4,000 locations by the end of next year. Expanding a franchise can be a risky move, and is not without its legal complications. For large corporations like Starbucks, branding abuse can be a major problem. For most Virginia-area businesses, they may not have the global market presence that Starbucks does, but may have similar concerns, especially in regards to business formation.

Some businesses have it in their business plan all along to expand into franchises, while others have opportunities present themselves. Expanding a consumer base can be a great benefit financially and to the reputation of the company. Starbucks' acquisition of a tea company will be of great benefit for their opening in the Asian market, where that beverage is preferred over coffee.

The decision to expand a business can present new legal difficulties for a company. Small and medium businesses often struggle with contract disputes, which must be handled carefully in order to maintain the reputation of the business. Dealing with vendor issues, real estate problems and other distractions can be detrimental to a company, but having experienced legal counsel can help to keep a business owner's mind on his business.

Source: CNNMoney, "Starbucks to add 3,000 new stores," Chris Isidore, Dec. 5, 2012