Understand Your Franchise Contract Before Becoming A Franchisee
It is so easy to get caught up in the moment. You might get so excited you almost forget which way is up or down. Deciding to buy a franchise can give you these exact feelings. You will actually have the chance to be a business owner, to use your skills and ambition to run a successful business, and to choose how your life will happen instead of letting others decided. However it is very important that you slow down a little bit and really think things through so you can make the best decision for you. There are many franchises available to choose from all with different things to offer. Along with the things to offer is also a contract. It is important that you fully understand your contract before signing up for any franchise opportunity.
The contract is a legal document which is binding to the franchisor and franchisee. It will state what the franchisor expects from the franchisee, what they will provide to the franchisee, and other things of that nature. It is probably one of the most critical steps to beginning as a franchisee. You must understand fully and competently what you are signing your name to. That is your legal agreement between you and your potential franchisor.
You may choose to have an attorney to help you with the process, which is a good decision. An attorney can help you work through some of the possible confusing lingo that is in the contract. You would not want to become a franchisee and be upset with possible situations that may not occur in your favor simply because you did not understand something in your contracted agreement which you signed.
The first thing you will do with your attorney is review the contract that the franchisor presents. You will want to check to see if it is the same as they have verbally spoken and promised to you. If there is something that is not right or that you were not informed of with which you disagree, you should contact the franchisor about it. You can ask them to make a change to the contract that can be a compromise to you both. However if an agreement cannot be reached then you may want to just move on. There is no sense in wasting your time, money and effort on something that will not benefit you in the long run or even now. There are so many other franchises out there to begin as a franchisee.
However if you think the contract is favorable to you make sure you are 100% sure. The franchise contract will contain many aspects of the agreement. Things it will cover are the price the franchisee will pay, what will be included in the package for that price, what services the franchisor will provide to the franchisee, the rights you have as a franchisee, your obligations to the franchisor as a franchisee, and the termination process of the agreement. These are all critical aspects to consider before you sign your name on the dotted line.
Franchising can be a great opportunity and you can be very successful with it, but you must understand the agreement first before you get involved in such a great investment!