Once a franchisee has bought a franchise they become privy to confidential information (know as trade secrets) that include unique systems and operations in the business. Franchisors may therefore wish to protect their proprietary information from being shared with competitors – this may result in legal restrictions preventing franchisees from owning other franchised brands. It is important to ask these questions of franchisors during the research phase before you sign a contract.
This information should be stipulated in the disclosure document and legal agreement. It is advisable to hire a lawyer to review both documents before making an investment.