Every day, people like you purchase a franchise without the benefit of franchise counsel. This happens despite the warning in the Franchise Disclosure Document (FDD) to seek the advice of an attorney. Before you invest in a franchise and sign the franchise agreement, be sure to use a franchise attorney to guide you along the way.
Investing in a franchise may very well be the most important decision you’ll ever make. You’ll need to fund this investment and despite the success of franchising, it’s still an investment with risk.
The foundation of a franchise rests upon the franchise agreement and additional documents such as a personal guaranty, non-compete and an acknowledgment disclosure. Many of the provisions in today’s franchise agreements are crafted on prior litigation and numerous judicial decisions. Since franchisors conduct their franchise business over a broad geographic area, they require a strong agreement that favors them and can withstand various legal challenges and franchisee claims.
Because of these factors, it’s important for you to use a qualified franchise attorney before completing the transaction. The worst reason for not using a franchise attorney is to save money.
There is a great deal of franchise information on the Internet, including various websites such as the Federal Trade Commission (FTC) site. It’s fine to use this information to gain a basic understanding of franchising but don’t think your new-found knowledge can replace a franchise attorney.
Before you sign the franchise agreement, pay the franchise fee and make the commitment to your new franchise, hire a franchise attorney to guide you. It’s an investment worth making.
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
The emphasis on franchise system growth is as old as franchising, having been accepted as the indicator of a quality franchise.
After owning 4 successful businesses, in different business sectors, there are two common attributes my good hires have shared; Curiosity and Tenacity.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
These traits lead to low franchisee turnover, an attractive investment opportunity, outlet growth and brand recognition and consumer satisfaction.
Owning a business is hard. Each venture has its differences – different customers, different go-to-market strategies, different business partners.