Posted by Elizabeth Gore-Jones
on 2 June 2019
I jointly presented at the Franchise and Business Expo with Sarah Stowe, Editor of Inside Franchise Business today.
We explained the following to prospective franchisees:
1. What they should be doing in the 14 day disclosure period. This covered:
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call current franchisees and past franchisees and ask them about the business
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find a franchising lawyer
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find an accountant who understands franchises
2.what does it mean if a franchisor guarantees you a certain income?
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what criteria do you need to meet?
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is the criteria fair?
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should the critiera be redrafted?
3. franchising doesn't guarantee success
4. the franchisor will not necessarily do all of the marketing or find all of the clients
5. the franchisee will be restrained from what decisions the franchisee can make about the business
6. the franchisee cannot stop payments if their business goes bad
7. can the franchisee continue to operate a business after the franchise comes to an end?
If you are considering becoming a franchisee, make sure you do your homework and take your time.
Good luck!
