08 Sep, 2017

In And Out Franchise

Franchise is the legal right granted to the franchisee by the franchisor to use his or her ideas, logo, expertise or processes to improve the business. It also refers to legal right granted by government to allow a person or a group to sell products in certain location. Good examples of franchise businesses are McDonald’s and Subway. Franchisee is expected to pay fees for using franchisor’s expertise, ideas and training services offered to him or her. The fee is called royalty. Franchise form of business takes short time but the period can be renewed. During the agreement, there are some rules that must be followed. The franchisee should secure the ideas of franchisor. There no warranty given and the franchisee should not take full control of the business. Business for franchising should have the following features: Highly profitable Simplified methods and processes New concepts Cheap to operate and maintain Enough space Franchise investigation should be done since this will help the buyer to collect information about the business potential and the risks. When one is interested in a certain franchise, he or she should seek a place of high demand for the products to move. It is wise to compare opportunities to ensure you find franchise which best suits your interests. Payment should be made after investigating the profitability and potential of the business. For you to be successful, it is important to seek advice from other franchisees. They will share with you their experiences and give advice on how to handle the business. Training or support given by franchisor is also very essential in running the business. When not satisfied with the agreement, a franchisee should visit attorney who has qualifications in franchise law for appropriate actions to be taken. He would also advise you to buy the franchise or not. It is important to note that, some of the equipments franchisee will need are not offered by the franchisor. He or she will have to budget for them. Franchise business allows the franchisee to select the business location but sometimes it depends on the franchisor. Suppose the franchise business fails or changes ownership, the franchisee’s business is adversely affected. The franchisee should be aware of his or her rights before agreeing with franchisor. This would help to solve the problem if by any chance it occurs. Franchise business law requires the franchisor to disclose information to potential buyers. This prevents the buyer from receiving fraud document. It is important for the franchisee to review the document before making an agreement with franchiser.