Perhaps without exception, all franchise agreements contain a non-compete covenant. The covenants may vary. The covenants may prohibit you from operating a competing business or any business when you are a franchisee.
Let's play a little game. Review Blue MauMau's alphabetized directory of franchises. HERE is the link. Take a few minutes to browse and then ask yourself how many companies you recognize. When you're done, come back to this article.
Many prospective franchise owners are attracted to the concept of buying a franchise because they believe it combines the freedom of owning a business with the safety of a benevolent guiding hand. Franchisors cultivate this concept. The catch phrase of the International Franchise Association is “In business for yourself, but not by yourself!”
Perhaps the most common and pervasive franchise myth is that franchising per se is a safe investment. Fed by a steady diet of industry hyperbole, the conventional wisdom that feeds this myth contends that when you buy a franchise you are investing in a proven brand and an established business system that will virtually guarantee business success.