Buying a Franchise is a complicated business investment. Generally the way most franchising agreements stand in modern day business you are leasing a business rather than buying one for a specific term. Most consumer awareness websites and even the government regulatory bodies recommend before taking the plunge and buying a franchise that you have a Franchising attorney look over the Uniform Franchise Offering Circular or UFOC. This is the required disclosure document that franchisees must be given 10-days prior to the sale. Some of the terms and conditions of a UFOC may seem rather onerous and yet these clauses and terms more often than not allow the Franchisor to maintain consistency, quality and brand name of all the franchised outlets and are indeed necessary. Nevertheless there are some adverse clauses, which can be hurtful to franchisees if a dispute arises or a default in the franchise occurs. It is important that you understand this going into the agreement. Never lie on a franchise application, indeed over 50% of the franchise application we had received online, via fax or mailed to us included lies from franchise buyers. If a dispute ever does arise this can come back to bite you, so tell the truth. Consider these seven tips when buying a franchised business. |
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