Buying into a franchise is likely one of the most paramount decisions you can make, financially and career-wise. With this, you may feel more comfortable with making this monumental move if you have a business partner, whom you trust, by your side. You must weigh the benefits and disadvantages of entering into a partnership. Continue reading to learn whether you should share a franchise with your partner and how one of the experienced franchise law attorneys at FortmanSpann, LLC can help you determine this.
Under what circumstances should I share a franchise with a partner?
There are some circumstances in which sharing a franchise with a partner might work to your benefit. Examples of such circumstances are as follows:
- You may not have enough funds to buy into a franchise independently.
- So with a partner, you may pool your resources to easily fulfill the initial financial requirements of starting up your franchise.
- You may not have enough experience with managing a franchise on your own.
- So with a partner, you may gain certain areas of expertise that best complement your strengths and limitations.
- You may not have enough confidence that your independent decisions are the best.
- So with a partner, you may gain a built-in check and balance system that gives you unbiased feedback for every franchise decision.
- You may know a trusted individual interested in the same franchise opportunity in a similar location.
- So with a partner, you may rest easy knowing that an individual with similar values can help you achieve a similar goal.
What are some disadvantages of a franchise partnership?
On the other side of the coin, there are other circumstances in which entering a franchise partnership may do nothing but hinder your opportunity. Examples of such circumstances are as follows:
- There is a high potential that you may enter disputes with your partner over franchise operations, franchise finances, etc.
- You may experience tension if you and your partner both want to have the “final word” on a franchise decision.
- You may realize your partner does not have the same intentions or drive as you when making your franchise successful.
- There may come a time when your partner wants to leave your franchise, but you are not financially suited to take over their share.
Of note, you may consider having silent investors over a partner for your franchise. This may be in your best interest if you wish to have more control, as silent investors may prioritize providing financial support over providing an opinion on the daily operations of your franchise.
Regarding your franchise partnership, there is no time like the present to consider it seriously. So please reach out to one of the skilled franchise law attorneys from FortmanSpann, LLC at your earliest possible convenience.