Business Ideas - Buying a Franchise

As is the case with all businesses, the franchiser is also in business & looking to get the highest return on their capital invested. So for the unwary franchisee, you could finish up legally trapped in or more aspects of the franchise that doesn't suit you or your locality.

Buying a franchise as a business idea can be both nice & bad. In case you have had absolutely no earlier business experience with a little bit of guidance from a nice Lawyer or business advisor can be a great way to start a business. But as with all businesses you still need to be aware of positive aspects of business that are not always apparent but need to be looked out for. This is the job of a nice lawyer or solicitor who specialises in little business franchising.

It is important to be clear on exactly what you are purchasing with a franchise. Unless everything is clearly defined so that you are clear on exactly what the franchisor is selling you, you may have expectations that are not going to be met.

What you are purchasing with a Franchise

Does the Franchise include a dollar figure for promotion?

For example, in case you are expecting business training on how to market your business, this needs clarification in writing as to exactly what, how, when & where & why the training will be given. If the franchisor gives the training away from your area & this training goes for a week or more at a time, are you able to afford to be absent from your fledgling new business for a whole week?

Some franchisors will include a set dollar figure to put towards promotion your business while others won't. If the franchisor says verbally that they will assist with the promotion costs this needs to be clearly defined & quantified & included in the legal papers. Promotion any business today is pricey but without it, the business will either fail or grow , slowly. It is in both your interests to establish & grow the franchised business package as soon as feasible.

Many franchises include a developed promotion plan based on their earlier experience & knowledge. After all, this is essential information & there is absolutely no point in reinventing the wheel. This alone may be the strongest selling point of the franchisors business package so any franchisor trying to sell their business opportunity would include a comprehensive promotion package.

The business idea of buying a franchise is a lovely providing that you do a thorough due diligence by speaking with other franchisees & have everything in writing.

Purchasing a Franchise is a great way to learn about walking a small business but it may even be a trap for the unwary. For more small business advice head on over to small business advice for some more business tips.