If you are thinking of taking on a franchising opportunity, then you need to be sure that the business you are looking at is right for you. You will need to get specialist legal advice from an expert solicitor before you get involved in any contracting. Read on to find out more information.
What kind of business is it?
Franchise solicitors will tell you that if you are going to invest in a particular brand, you need to be confident that it’s something you could handle. Look at the business you are thinking of investing in and do some research into the relevant market. Have you worked in the area before? Does it offer the kind of work you enjoy? Would it involve working with customers or business-to-business? Having answers to these questions will help you determine whether the opportunity is right for you.
Is the business doing well?
Not all businesses are right for franchising, which is why you should always seek franchising legal advice before accepting an opportunity. The business in question should have been established for a while and it should be successful; after all, it doesn’t make much sense to buy into a business that is undoubtedly failing. You need to be confident that the state of the current business is healthy and that it has potential as a franchise.
If the company already has some franchisees, you should talk to them before you consider getting involved. This can give you a better idea of what it might be like to work with the company and how much freedom you would have to run your own business under the pre-existing brand.
Where is the business based?
You should also look at issues such as where the business is based, as some opportunities are highly local and so might not be right for your area. If you’re thinking of opening a franchise some distance away from the parent company, you need to be certain that the market is suitable for it. This is where your research comes in; your franchise solicitors will be able to give you advice if you need it.
How much does it cost?
One of the most important things to think about it how much buying into the business is going to cost. There will be an up-front fee that you need to pay to the parent company and then you’ll also have to pay them royalties based on your profits. Your business will also have running costs and you’ll need to build in legal costs, too; you need to be certain you can afford it all before you agree to anything.