Thinking About Buying a Franchise? Consider These Factors
If you are ready to become a business owner, one option you may be considering is buying a franchise. Purchasing a franchise location of an existing company is a great way to start your journey into business ownership. Buying a franchise allows you to operate your business while still receiving guidance and leadership from the franchisor. However, a franchise is not the right choice for everyone. If you are thinking about buying a franchise, make sure to speak with an experienced business lawyer so you can avoid costly legal mistakes. Additionally, consider the following factors.
Your Business Goals and Personal Aspirations
Being the owner of a franchise is much different than starting your own business. The benefits of a franchise are plenty. The business will likely be profitable more quickly than a startup, you gain valuable resources and assistance from the parent company, and you benefit from the company’s established reputation. However, buying a franchise also limits the direct input you have on how the business is run. You will be expected to conform to the franchisor’s policies, rules, and procedures. If you are a person who thrives on creativity and independence, buying a franchise may not be the best option for you. However, if you are looking to buy a business that is ready to start operations immediately, a franchise may be the right choice. You will need to evaluate your own goals and aspirations to know whether buying this type of business is the best way to achieve these goals.
Your Current and Future Financial Situation
As with most business decisions, one of the biggest factors that will influence your decision to buy a franchise is money. The “franchise fee” is or initial fee is the one-time, up-front payment you will pay to the franchisor. This fee may be anywhere from a couple thousand dollars to $50,000 or more. The franchise fee is often assumed to be the total cost of opening a franchise location of a business. However, there are many other expenses you will be confronted with, including building and construction costs, royalty fees, material and equipment purchases, and more.
Contact a Darien Business Lawyer
If you are thinking about buying a franchise in Connecticut, you probably have several questions and concerns. A distinguished Stamford, CT business law attorney from the Law Offices of Peter V. Lathouris, LLC can help. Our team is highly qualified and can assist you with business sales and purchases, contract review and drafting, general counsel services, and much more. Call us today to schedule a free, confidential consultation.
Source:
https://www.forbes.com/sites/susanadams/2016/06/22/12-things-to-do-before-you-buy-a-franchise/