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Quick Tips When Negotiating A Franchise

 

  1. Evaluate your abilities and priorities before your begin your analysis of potential franchise opportunities.
  1. Know what you want to accomplish and obtain the rights for business you can afford.
  1. Make the effort to determine the financial stability of the franchisor.
  1. Consider the size and availability of the franchisor’s management and support team – where are they located in relation to your franchise?
  1. Preparing a sound business plan is a key tool to arranging your financing, establishing your objectives and understanding your budgets.
  1. Design your own list of questions for the franchisor – avoid questions which prompt a “yes” or “no” answer.
  1. Seek out a lawyer and an accountant who specialize in franchising matters.
  1. Advertising programs by the franchisor are designed to promote the franchise brand – your own opinion is essential.
  1. The issue of non-competition is one of the most important legal issues arising when the relationship between the franchisee and the franchisor is over.
  1. A franchise lawyer can determine whether the terms of the franchise agreement are reasonable.
  1. Franchising is based, in part, on the notion that the owner manager brings enthusiasm, drive and dedication to their business.
  1. A franchise that has environmental waste will be subject to governmental regulations.
  1. The franchisor has the right to act in its own best interests or in the interest of the system as a whole.
  1. The three pillars of any business format franchise are the brand name, the operating systems and the on-going support.
  1. Ask yourself, if I was a consumer, would I shop or buy from this franchise establishment?
  1. Be absolutely sure and well versed with all the rules concerning purchasing and merchandising service product or service before your open the doors to your business.
  1. Bankers need to satisfy themselves that loans can be repaid adequately from the cash flow generated by the business.
  1. Hiring, training and motivating employees become a key component of good business strategy.
  1. Proper motivation starts by ensuring your employees understand what is expected of them.
  1. It is essential to understand and be comfortable with the arrangements for your first location.


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