What is the legal status of the relationship?
Once both parties agree that it is the right fit, a franchise agreement will be signed. It’s important to understand that joining a franchise should be a due diligence process for both parties, with plenty of time and clear minds. Both sides must be selective to achieve success.
It is a legally binding contract that outlines the rights and responsibilities of both parties. Before signing, franchisees should have the agreement reviewed by a franchise lawyer. For Franchise My Business advice, contact Ashtons who supply Franchise My Business information.
Some franchises have agreements that last ten years or longer. Documents can be long, and include clauses that cover every aspect of the business relationship from its inception to eventual sale.
This document is a tool for franchisers to protect their business model, brand, and IP from being misused. It also includes an operations manual that outlines how the franchisee runs the business on a daily basis.
What are the benefits of becoming a franchisee?
- You should use what has been proven to work. Someone else has already gone through the costly trial and error phase of setting up and growing a business.
- Franchisees have a statistically higher chance of success in self-employment: the failure rate is less than 5% and 90% report profitability.
- Experienced people can provide advice on all aspects of business management.
- Economies of scale allows you to access technology that an individual wouldn’t be able to afford.
- Part of a larger brand generates recognition, loyalty, and expectations.
- Both the franchiser as well as other franchisees can benefit from sharing their experience and knowledge.
