Buying a franchise is almost like completing a building that someone else has left incomplete. You have the foundation, you need to invest some time and money in completing it based on the original design. Of course you can build in your own interpretations of the design. A franchise can be turned into a great success with the help of the existing marketing and operational support.
The process of selecting and buying a franchise is not difficult for someone who knows exactly what he wants and what he can pay. However, many people hire a franchise lawyer to help to ensure that they go into business aware of all the fine print. There are some key things to keep in mind as well, when making the purchase. This article will briefly guide you through them.
Choose a business you will like and can afford
Of course this should be obvious without it being said. But people often don’t realize that they are more likely to be successful in their business venture if they enjoy what they are doing. Your business is going to become a big part of your life. You have to spend time on it. Why take up something you are likely to find uninspiring later?
Moreover, make sure that you know your figures well when you buy. If you think you need an accountant, hire one. Take his or her advice and work out how much you may have to borrow over and above what you can already invest. Find out how long it is likely to take to take for it to start giving you proportionate returns.
Know the program well
Ask the franchiser all the tough questions. Have there been any lawsuits involving them? Find out the background of the business you will be funding. Read carefully through the offering circular. Compare the circulars from a number of prospective franchisers. Find out about the upfront fees and the ongoing charges that you have to pay. Ongoing charges are typically from royalties and the costs of advertising.
Other franchisees are your best sources of information
They will be more than happy to help you, usually. Ask them what they like or don’t like about the business. They may take you into their store to examine the stores records of profit and loss. Look at the products for yourself. They are likely to tell you the truth about how they bought their business. From their experiences you can gauge what you can expect out of your business as well.
Know everything about the agreement
You cannot be forced into signing the franchise agreement. By federal law, a franchiser is compelled to wait for ten business days at least before you are expected to sign it. In the meantime, read the document thoroughly. At this stage it helps to hire a specialist lawyer to look at the program from a legal perspective. You can even change the terms of the contract and they will help you through the process of buying a franchise. Chicago has no shortage of legal professionals who will work together with you to give your venture a head start.
Buying a franchise Chicago – Do you need legal advice with buying a franchise? Chicago residents go to the specialized lawyers at Franlaw. They provide an advice not only with purchasing a new franchise, but in selling an existing one.