Franchising is business relationships like no other and would-be franchisees don’t always know what they’re getting into. Before venturing into a huge capital investment, you should thoroughly investigate both the venture and the Franchise Agreement with the assistance of your lawyer.
Your Franchise Agreement will provide day-to-day operation of your business and will determine your roles and responsibilities as a franchise owner. It is relevant for you to know what payments you are required to make to the franchisor for a transfer of the franchise, whether they are non-refundable or under what conditions they are returnable. You will want to consider conditions concerning the rent or purchase of property, supplies and equipment. You will also need to know what restrictions there may be on use of intellectual property, as these will affect your advertising and other business plans.
These are only a few of the many considerations which should be addressed before entering into a Franchise Agreement. SN Law Office can provide you with advice on franchise purchases, and can offer assistance in the establishment and on-going operation of your business.