The good thing about starting a business is that there are several ways to do it. You can start a venture from scratch with an idea and capital, buy off an existing business, or set up a franchise.
In a franchise, an individual or business (franchisee) pays an agreed fee to another already-established business (franchisor) for permission to use their name, brand, and model. Starting a franchise is likely to work because the franchisor provides you with resources like training, launching support, and marketing to get started. Some franchisors may even offer financial assistance.
Thinking of setting up a franchise? Here are some of the most important things to get you started. A business lawyer can also help answer your questions.
Before you start a franchise, consider both the pros and cons, as well as common challenges you’re likely to encounter. Are they worth it? Are you prepared to work with the franchisor or would you rather work alone?
Most importantly, evaluate the total cost you’ll need to get started, along with the legal requirements. Consider finding a business formation lawyer at this point because they understand this better and can guide you on the right path.
The most popular industry for franchising is restauranteering with multinational companies like McDonald’s and Taco Bell. However, there are other numerous industries you can choose from, depending on your interests.
Determine which industry matches your skills and passion, and then research available franchising opportunities.
A franchise disclosure document (FDD) is a legal document provided by a franchisor. It contains all the important information that a franchisee requires to make an informed decision.
The most common items you can expect in an FDD include:
To safeguard your rights as a franchisee, review this document with your business lawyer so that you know whether to go ahead.
Incorporating a business makes it a legal entity with liabilities and so on. This also protects your personal assets in case of litigation, and your corporation might even qualify for a tax relief that’s not available to businesses under sole proprietorship.
Your business will also look more professional to prospective franchisors and customers.
Next, determine the most ideal location to set up your franchise. Some franchisors will advise you on the best locations and store size, depending on their existing models.
However, the franchisee is responsible for things like buying or leasing properties and getting into agreements with landlords or sellers. Here, you might be better off with a lawyer who’s knowledgeable on everything real estate.
When you’ve decided to start a franchise, the next best thing you should do is get in touch with a franchise lawyer. Despite it being easier than other models, there still are numerous legal issues that you need to sort out before getting into an agreement and launching a franchise. Speak with a business lawyer from the beginning to protect your rights and ensure a smooth sail.
Get professional legal representation at The Curry Law Firm when you call our offices at 713-678-0013 or submit the contact form below with your details.
