Buying a Franchise? Have questions? See below:
Another way to get started in business is to buy a franchise. A franchise is defined as a license to operate a branch of an existing business with an established brand name. Common examples that come to mind would include McDonald's or Subway. Among other things, the franchise's brand name should ensure a solid customer base. For this reason, buying a franchise is a good option if you want to learn about a business before starting your own from scratch.
To buy a franchise, you'll need to sign a complex contract with the franchisor. The term of these agreements can be complicated, so it's a good idea to have the contract reviewed by a lawyer. Also be prepared to have your creditworthiness and your business background thoroughly investigated.
As a franchisee, you receive certain benefits, such as access to corporate info, the use of trademarks and other branding and more. In return, you're required to run the business according to standards outlined by the parent company.
To buy a franchise, you'll need to sign a complex contract with the franchisor. The term of these agreements can be complicated, so it's a good idea to have the contract reviewed by a lawyer. Also be prepared to have your creditworthiness and your business background thoroughly investigated.
As a franchisee, you receive certain benefits, such as access to corporate info, the use of trademarks and other branding and more. In return, you're required to run the business according to standards outlined by the parent company.
What happens if I decide to sell the franchise?
That depends on the provisions of your franchise agreement. If you think you may want to sell the franchise on day, look at the section of the agreement that deals with transferring your rights. It may be prohibited or allowed as long as you follow certain procedures and the buyer meets any criteria spelled out in the franchise agreement.
