Buying into a franchise may be one of the biggest financial decisions that you may make in your lifetime. With such a big purchase comes a great deal of risk that you must analyze and manage. And you should not go through this acquisition process without sound guidance, especially if this is your first experience with doing so. Continue reading to learn what factors you should evaluate before purchasing a franchise and how one of the experienced franchise acquisition attorneys at FortmanSpann, LLC can help you throughout this process.
What factors should I consider before purchasing a franchise?
It is a common misconception that all franchisees will equally prosper from the same franchise system. Rather, a franchise opportunity may be a good fit for one franchisee while it may not align with the personal goals of another. This is why you must reflect on what you are looking for and what a franchise system is promising to offer you. Without further ado, you must consider the following factors before purchasing a franchise:
- You must evaluate whether you are able and willing to make a multi-year commitment to a franchise system.
- You must evaluate whether the profits received by existing franchisees match your expectations.
- You must evaluate whether the franchisor support and advertising initiatives given to existing franchisees match your expectations.
- You must evaluate whether the legal rights outlined in the franchise disclosure document match your expectations.
- You must evaluate whether you can enhance and clarify the scope of your protected territory in your franchise disclosure document, if necessary.
- You must evaluate whether you can enhance and clarify the grace period of your royalty obligations in your franchise disclosure document, if necessary.
How can an attorney help me throughout the purchasing process?
It is imperative for you to understand that a franchise consulting company is not the same as a franchise acquisition attorney. This is because, on one hand, a franchise consulting company only makes money if the franchise transaction goes through. So it is likely that they may do everything in their power to encourage you to follow through with the purchasing process.
But, on the other hand, a franchise acquisition attorney does a deep dive into the potential risks and rewards of becoming a franchisee. An attorney may go as far as dissuade you from making this purchase to not gamble with your financial future. This may just be an educated recommendation that you may not conclude yourself or find anywhere else.
Regardless of what your specific circumstances may be, you must not second-guess your instinct to retain the services of one of the skilled franchise law attorneys from FortmanSpann, LLC. Schedule your initial consultation with our firm today.