By Welch, Gold & Siegel – Pre-Paid Legal Services, Inc., Pennsylvania
P.T. Barnum, the masterful circus entrepreneur once said, "There's a sucker born every minute." Hopefully, you weren't born in that exact minute because you're wise enough to do your homework or hire a business attorney to help you.
Most everyone dreams of being their own man, their own woman, their own boss. It's an honest dream especially when shiny franchises tempt just over the horizon.
Franchisors do a lot of the legwork so you don't have to—or so you wrongly assume.
They already have product positioning, a marketing plan, sourcing, brand identity, costs and revenue projections.
All you need to do is sign on the dotted line, pay the price for the privilege of opening a franchise, hire and train employees, and watch the income roll in.
Is that right?
A franchisor is in the business of selling more franchises so just because you think it sounds like a winner, doesn't mean it is.
Even if you have good instincts, even if you're investing in this franchise so your adult children can be part of the business or you always wanted to sell flowers, fast food, or the next new trend...please, hit the pause button.
Here are a few business considerations.
Owning a franchise has no guarantees. Nothing in life has a guarantee not even a franchise. Worse, some franchises make promises they can't keep -- at your hard-earned expense.
You have to read the fine print and then read the finest print especially about competition. How near will the next franchise be to your franchise? Some franchises are less than a few blocks or mile apart.
What about training? Are you a quick study? What happens if you need more training not less? What happens if you need to ask for more direction but don't know how?
What if you want to add a new product or service which is hot in your neighborhood or region but the franchisor says no because it's not part of the national plan?
Hiring a business lawyer will be in your best interest because the franchisor already has their own lawyers. You will want a business lawyer to look over every document and talk frankly with you about the benefits and pitfalls of owning a franchise. Ask your lawyer to get real and realistic.
Take your time in making a decision. Don't be pressured to sign before you're ready; that is suspicious in itself.
Look but don't leap without your franchisee legal representation by your side. Contact Welch Gold Siegel, PA Pre-Paid Lawyers for safety net assistance.
Cash-flow is the lifeblood of every small business. Avoiding large or prolonged interruptions in that flow can be the difference between survival and failure. Sometimes those interruptions are the result of non-paying customers, forcing you to play debt collector. This … Continue reading
“The main purpose of auto insurance is protecting you and your family in the event of a tragedy not just “keeping legal”. Money is tight today and many families are looking for ways to cut their budget without sacrificing too … Continue reading
Due to a variety of factors, America continues to be in the midst of a home mortgage foreclosure crisis. Thousands of people across the country have fallen behind on their mortgages and have little hope of catching up with the … Continue reading
If you have any questions relating to job loss, and the financial issues that often occur, please contact us at 1-800-375-3089 for a free consultation. Federal Assistance for Health Insurance Costs The subsidy created by the American Recovery and Reinvestment … Continue reading
