Buying a Franchise

Buying a Franchise

Buying a Franchise

Franchising is a type of business ownership which allows you to operate an independent business with a banner of an already established enterprise. Before entering into a franchise you should check the reputation and track record of the Franchisor very carefully. Also find out what advertising budget and back up services the Franchisor offers, and precisely what you will get for your franchise fee.

The fees payable to the Franchisor must be clearly stated, along with the terms of sale for goods supplied by the Franchisor. You will need to know if you can purchase stock from outside the franchise network. A Franchise Agreement is a written document outlining the rights and obligations of both the Franchisor and the Franchisee. It is a legal contract and much care should be given to its contents.

Ultimately it contains the rules and regulations upon which your future income and security will depend. Whilst many franchises are very successful others are not.