Before you buy a business franchise, you should make sure youâ€™re ready. From choosing the franchise thatâ€™s right for you, to making sure youâ€™re right for the franchise, this article takes you through the steps youâ€™ll need to cover in order to get your franchising dreams off the ground.
Finding the Right Business Franchise for You
Thereâ€™s literally hundreds of sectors and thousands of franchises to choose between. Thatâ€™s why you have to find franchising opportunities that suit your lifestyle, skill-set and aspirations. The internet is a great place to start. Thereâ€™s online franchise directories thatâ€™ll guide you through the different franchise opportunities that are out there, and theyâ€™ll even put you in touch with relevant department within the company. However, if you donâ€™t like getting sales calls, you shouldnâ€™t contact the company to get information from them until youâ€™ve done some level of research.
Understanding the Legal Stuff
In franchising, itâ€™s all comes down to your relationship with the franchisor. Which is why, you have to understand the relationship that they are proposing. Read through their legal documentation in detail, and make sure your lawyer does as well. When selecting a lawyer, consider working with one that has experience in dealing with franchise agreements. A lawyer with franchising experience will understand the business to a greater degree, and the kind of standard terms you can expect.
As is naturally the case, many of your conversations will be over the phone and in person. This is great for really getting to know the company, but can cause some problems later on if some of the representations that the franchisor has made to you turn out to be false.
Thatâ€™s why you should make notes of any points that have been made orally and discuss with your lawyer whether or not these form part of your contract with the franchisor. You should tidy up your notes, and send them to the
sales person and ask them to clarify everything you believe is accurate â€“ you should ask them to respond in writing. For telephone conversations, you could consider asking the franchisor if it is okay to record the conversation. However, this could also damage your relationship with the company. They are unlikely to say no, but they are also unlikely to think of you highly when you show signs you donâ€™t trust them. The letter can work just as well, if you cover all important points, and will make you appear professional too.
Speaking To Other Franchise Owners
Speak to franchise owners and find out what they think about the business. Itâ€™s easy for the
to cherry pick the franchisees thatâ€™ll offer the best recommendations, but you could consider contacting owners yourself. That way you will get a random sample. Find out what the company is like to deal with after you have entered into a franchising agreement.
You should ask the franchisor if the percentage of franchising arrangements that fail, and the reason why they fail. Or else, how do you know what mistakes to avoid in your business? About the Author