If you want to start a business, there are likely many things you will want to consider. How much money do you have available for your enterprise? What kind of risk are you willing to accept? And are you open to the possibility of franchising?
While you might have numerous business concepts in mind, sometimes becoming a franchisee is the best route to take to entrepreneurship. A tested business model built on consistency could pave your way to success. And while becoming a franchisee may reduce some of your initial risk, you will probably want to make sure you fully understand the terms of your agreement.
Basic elements of a franchise agreement
Before you sign your agreement, be sure to review its basic elements, which may include:
- The related fees, both for your initial costs and those which will continue throughout the length of your agreement
- Your defined relationship with the franchisor, including the names of those involved, your obligations to the franchisor and intellectual property ownership
- Provided training and support from the franchisor – making sure you have adequate training to open your franchise location is important; so is continued support
Although there are several questions and concerns you may have about your agreement, making sure you agree with the specific terms of your franchise agreement can help you avoid a dispute in the future, should a disagreement arise. And discussing potential questions and concerns up front can be instrumental in the creation of a continued, successful relationship.