7 Top Considerations for a Franchise Agreement
In Show 151 – 7 Top Considerations for a Franchise Agreement originally broadcast on Facebook Live on Monday 19 November 2018 we explore this interesting topic.
Franchising is a great way to expand your business. But there are some important steps you need to follow. Today on Fast Fix Monday we present the seven things you need to consider for a franchise agreement.
1. Do you have appropriate systems and procedures? A franchise allows others to use those systems and procedures. If they are not clearly articulated then you don’t have anything to franchise.
2. Do you have a manual? Even if your systems and procedures are in place they still need to be explained. A manual is the best way to do that. Don’t rely on someone else to write your manual. You have to do it yourself.
3. Can people make money from your model? This may seem like an obvious question. But we see clients all the time who don’t realize their franchise fees and supply costs are so onerous that no one would ever be able to make money using their model.
4. What are your minimum criteria? Before you sell someone a franchise you need to have some benchmarks in place. You want to bring on the right people to ensure your brand prospers.
5. What is your training plan? All the big franchisors in the world put their new franchisers through rigorous training.
6. What boundaries do you set for you franchisee? When and where are they able to contact you? How much support can they depend on?
7. Who enters into the lease? Either the franchisee or franchisor can lease the property where they business will operate. A lawyer will help you to understand the risks and rewards for each arrangement.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.