Checklist Before Investing In A Franchise Opportunity

Before you make the final decision of buying a franchise business, make sure you have thoroughly understood the franchise concept. Consult an attorney, preferably one with experience in this area, to help you make understand the disclosure document and contract. Any entrepreneur who wishes to do serious business will never enter into an important business relationship without consulting an attorney or someone who understands business formalities.

Here is some checklist that needs to be following before buying a new franchise business:

• Check out properly to find out whether the franchise company is having proper registration or not.
• Careful analysis of the financial statements in the franchise agreement as it will give you a clear picture about the franchisor's strengths and weaknesses.
• Find out the risk factors of the new franchise business that are mostly outlined in the legal documents. This is important to analyze the important factors that may make the business venture risky or speculative.
• Find out details from the franchisor how many businesses have been operating within the franchise network; the names, addresses, and phone numbers of existing franchisee and the exact turnover of the company.
• Also try to get information about the history of the new franchise business, sellers, directors, sales representatives and affiliates.
• Ask for a market study of the products or services that the franchise business is dealing with.
• Get information about the special training necessary for running the franchise business and whether the franchisor would be providing the same or not.
• Find out what will be your total outlay and how much the product will or new franchise business cost you. Are there initial fees, deposits, or down payments?
• It is also essential to find out beforehand whether you can terminate or modify the franchise agreement.

This franchise checklist will definitely help you in making the right decision. Finally, while buying a franchise business, you must make sure to take the help of some expert or attorney.

Do You Really Want to Invest In a Franchise Business?

Across India, there are end numbers of business opportunities in the form of franchise business where an entrepreneur or investor can think of making a good investment. In fact, owning the franchise rights of a company or brand makes an excellent investment idea for anyone who does not have any prior experience in running a business and dreams of becoming financially strong in the coming days.

Looking at the mushrooming number of franchise business outlets and shops located in every corner of the country, it becomes very clear that franchises are surely a popular investment opportunity for many. The opportunity to work with a well established brand, enjoy steady flow of income, ongoing support from the franchisor and a dedicated customer base are just some of the few benefits of owning a franchise business.

But don’t get lured here as there are certain few things that you need to understand before starting your search for the top franchise business opportunities in the market.

To begin with, there is the “Royalty Fees” that a franchisee needs to pay the franchisor on regular basis depending on some pre set norms. In simple terms, these fees are part of the income made by the franchisee that he or she needs to pay back to the franchisor in lieu with the franchise concepts. Thus, when buying a franchise, you need to be mentally prepared to part away a substantial amount away from whatever earnings you are making.

Secondly, as a franchisee you need to operate the business on some pre-defined business policies and strategies. Help will be definitely provided by the franchisor in setting up the business and later on continuous assistance for a franchise owner. Certainly, it is a good thing to have someone stand by your side and assist you in running a business, but at times even you don’t like some business policies or strategies you need to follow it at any cost. After all, a company’s overall objective is always to make profit and franchisee need to support the owners for the betterment of the overall brand enhancement.

To conclude, try to gain knowledge about franchise business opportunities as much as possible to determine if you really want to buy a franchise. Even though the idea may appear good at first glance, evaluating the whole concept may be a good idea before making a final decision!

Never Make the Mistake of Ignoring a Franchise Agreement

Starting a business is a very big step in an entrepreneur’s life. Buying a franchise business is a good idea but remember for this you need to invest your hard earned money. A top franchise business opportunity never comes cheap, so it is advisable to research properly before buying a franchise business.

As the success rate for franchise-owned businesses is significantly better as compared to many independently started businesses, entrepreneurs everywhere are willing to invest in franchising opportunities.

Well, once the decision of starting a franchise business has been made, the real work for the aspiring entrepreneur begins. There are many things that need to be considered and the first thing that must be in the top of your priority list is the franchise agreement. A franchise agreement is basically a contract between a franchisee (Investor) and the franchisor (owner of the business) which allows the rights to the franchisee to use the owner's trademark, trade name or advertising symbol. In exchange for this right, the franchisee pays fees to the franchisor. This legal agreement offers the right to a franchisee to use the trademark, brand name and logo of a well known entity.

There are end numbers of things that are mentioned in a franchise agreement such as what loyalty fees should be paid, what type of support the franchisor will provide to the franchisee, what type of materials will be offered to the franchisee, what marketing and promotional strategies must be followed by the franchisee and so on. Also in this legally binding franchise agreement exact details of all the responsibilities and expectations for the franchisor and franchisee are mentioned.

A well written franchise agreement helps in avoiding any disputes afterward between the franchisor and the franchisee. To make sure that a franchise agreement is written in favor of both the parties, you need to consult a lawyer. Discuss about the franchise agreement with your lawyer before signing it. Remember once signed, both the parties are legally obligated to uphold all the provisions of the agreement. So never ignore the importance of a franchise agreement if you plan buying a franchise business.