After two difficult years, lots of people have high hopes for 2022. Lots of people are also ready for a change; and, for some, this means exploring the world of franchising. If you are thinking about buying a franchise, there is a lot you need to know. Here, franchise attorney Jeffrey M. Goldstein shares five tips for buying a franchise in the coming year.
1. Explore Your Options
As a prospective franchisee, you have no shortage of options. While you might currently be focused on a particular industry or even a particular brand, it is important to approach the franchise buying process with an open mind. If you narrow your options too soon, you may end up with your heart set on an opportunity that ultimately isn’t the best opportunity for you.
At the same time, as a franchisee, you need to feel passionate about your business. You will be investing a lot of money, and you will be devoting a lot of time to making your franchise a success. If you pick an industry or franchise based solely on its likelihood of success, you may not have the same drive that you would have if you were passionate about the concept.
2. Weigh Your Priorities
Given the number of options that are available, you will want to carefully weigh your priorities as you work toward making a buying decision. Do you want to buy into a large, well-known franchised brand? Or, are you more interested in being one of the first franchisees in a growing system? Are you planning to personally run the business? Or, do you need to choose a franchisor that allows for more passive ownership? These are just two examples of numerous issues that you will need to keep in mind as you explore potential investments.
3. Take Your Time
When buying a franchise, you need to take your time. Do not let a franchisor’s sales team rush you into signing before you are ready. You will be investing tens – if not hundreds – of thousands of dollars, and you will be committing to a multi-year agreement with little (if any) room for error. Choosing a franchise is an extremely important decision, and you need to make sure you decide when you are ready to move forward.
4. Make Your Own Informed Decisions
In this same vein, when evaluating franchise opportunities, you need to make your own informed decisions. Do not rely solely on what the franchisor’s representatives tell you, and do not give too much weight to online “top franchises” lists and reviews. Talk to current and former franchisees, talk to your franchise attorney and financial advisor, and do not move forward until you have had all of your questions answered.
5. Make Sure You Know What You’re Signing
Finally, before signing a franchise agreement, you need to make sure you know what you’re signing. This means hiring a franchise attorney to review the agreement in detail. Depending on the terms of the agreement, it may also be necessary to negotiate. A franchise attorney can negotiate on your behalf, and you can (and should) work closely with your attorney throughout the process so that you have a clear understanding of the legal terms that govern your franchise.
Speak with Franchise Attorney Jeffrey M. Goldstein
Thinking about buying a franchise in 2022? We provide four tiers of fixed-fee franchise business reviews for prospective franchisees. To discuss your options with franchise attorney Jeffrey M. Goldstein in confidence, call 202-293-3947 or request a free consultation online today.
