Signing into a franchise agreement can be a daunting prospect, filled with anticipatory fear and excitement. As you move into this phase of your career, you must recognize the importance and responsibility your signature signifies. Often, new franchise owners fail to take necessary precautions and examine certain elements which leaves them ill-prepared and facing unexpected roadblocks or pitfalls. As a competent franchise owner, the journey begins with preparations before the agreement is signed. Here are four tips to equip you to get a head start in the game and hit the ground running once the franchise becomes yours.
1. Assess Your Fit
As a franchisee, your overarching goals –those which will determine your success in the long run –must coincide with the predetermined layout that has been constructed by the franchise that you desire to be a part of. Additionally, it is necessary to ensure that the industry that your franchise is situated in one that you can practically envision yourself participating in. For example, all money aside, if you are investing in a fast food franchise, are you prepared to bear with and excel in the nitty-gritty details that come with the inherent responsibility. Assessing your personal skill set and applying the practicalities is important so that you are able to lead a successful business as well as lead a personally satisfying life where the daily mundanities do not deplete you on a personal level.
2. Speak with Existing Franchises
As a conscientious future franchisee, it is important to do your research beforehand and test the waters before you dive in. In order to do so, you can put yourself out there and get in contact with existing franchisees to speak about the matter at hand. By speaking with 10 to 15 existing franchisees, you will gain a fuller understanding of the franchisees themselves and how you will fit in with them.
3. Understand Your Relationship to the Top
It is possible to avoid a lot of uncomfortable and awkward situations by understanding the expectations of correspondence between you and the franchisor prior to signing. Through close reading of the intricacies of the contract, especially sections 9 and 11 in the franchise disclosure document, you can ascertain how the relationship between franchisee and franchisor will play out practically and according to their standards. By understanding the obligations of the franchisee as well as those of the franchisor, you will be adequately prepared to launch into this exciting new business endeavor. Understanding the elements of the agreement that you are signing will ensure an agreeable discourse between the two and set your franchise up for success in the future.
4. Work with a Franchise Attorney
Finally, to create the best possible scenario as you enter into your new role as a franchisee, it is essential to have an experienced franchise attorney on your side. This professional’s job will be to review a franchise agreement before signing and address issues and concerns with experience and wisdom.
About FranNet NJ NYC
FranNet of New Jersey and New York City has several franchise experts to help you explore the world of franchise ownership. At FranNet, we provide no-cost guidance, information and support to individuals who are interested in purchasing a franchised business. We are experts in helping our clients evaluate the various types of franchise opportunities in the marketplace today. Our goal is to not only help entrepreneurs’ dreams of business ownership come true but to help people make sound business decisions that give them the best chance for future success.