Super Lawyers
The top Attorneys in Virginia and
the Washington, D.C. metropolitan
area, only 5% of the attorneys
in the state are named in SuperLawyers
ATA NBTA | The National Board of Trial Advocacy Association of Trial Lawyers of America Virginia Trial Lawyers Association National Asociation of Distinguished Counsel | Nation's Top One Percent | NADC

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

No Comments

Leave a comment
Comment Information

DISCLAIMER: This website is designed to provide only general information; nothing contained herein constitutes legal advice nor is it an offer of legal representation. Use of this website is not intended in any way to create or convey the impression that such use of the website by any person, organization, or entity of any nature and/or kind constitutes any attorney-client relationship whatsoever and any information provided in this website shall not constitute legal advice. The use of any electronic communication available through this website with the Law Office of Richard L. Downey or any person associated with this website shall not constitute attorney-client relationship nor will any communication received by the Law Office of Richard L. Downey constitute an attorney-client communication. The Law Office of Richard L. Downey cannot make any guarantees as to the accuracy or currency of any information contained in or created in this website or the use of any link to another website contained in this website. The information that you obtain at this website is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice concerning your own particular situation.

*The National Board of Trial Advocacy is accredited by the American Bar Association. Currently there is no procedure in the Commonwealth of Virginia for approving certifying organizations.