Read the full article at: blogs.findlaw.com
Many entrepreneurs are attracted to franchising because of their turn-key characteristics and big brand appeal, but there’s many things to consider before signing on the dotted line.
Here’s 3 things you should know when buying a franchise from FindLaw.com:
1. Know the franchise. Learn how to evaluate a franchise before you buy into one. Discover all the hidden costs, understand the markets and the marketing, as well as all the franchise’s finances. Conduct a thorough due diligence so you’re able to make an informed business decision.
2. Know the franchise agreement. Your franchise agreement will have the biggest impact on whether or not your franchise succeeds. You should know how it’s drafted and how to get out of it. You should know the proper disclosures, any territorial restrictions, fees, and obligations you have as a franchisee. You also should know what happens if there’s a breach of contract and your recourse for misrepresentations or failures to provide support.
3. Know the law. There are many legal considerations when buying a franchise, including territorial rights in the local market and accessing the franchisor’s financial history.
After the franchise is purchased, franchise owners face legal issues throughout the life of the franchise, including providing continual disclosures, receiving ongoing support and resisting additional competitors.
Before making the commitment to buy a franchise, it may be wise to consult with an experienced legal business lawyer. Read the full article at findlaw.com.
“One of the biggest concerns when buying a franchise is the franchise agreement. From how they’re drafted to how to get out of one, your franchise agreement will have the greatest impact on whether or not your franchise succeeds..”