Issues to Consider Before Buying a Franchise
Choosing a franchise and signing a franchise agreement are big steps to take, before actually signing the agreement, there are a few issues to consider.
- Length of agreement
What is the duration of the agreement? Do you have the right to renew? How many times can you renew?
What is the initial fee? What are the continuing payments and how often do they need to be paid?
Do you have the right to terminate the agreement early? Does the franchisor? What are the ‘non-curable’ and ‘curable’ grounds for termination?
Do you have the right to sell the franchise? Can the franchisor refuse a transfer? If something happens to you will the franchisor terminate? Will your family have the option of taking over?
Do you have the righto a jury trial? Will you have to travel out of state? Are there limits to the types or amount of damages that either side can recover?
Before signing any agreement, make sure to read the entire document and run anything you don’t understand by your lawyer. Committing to a franchise is a big decision and should be an educated decision. Learn as much about the business as you can, read the FDD and consult a lawyer before making any final judgments.
If you’re looking for a thriving franchise, look no further than Executive Care. For more information about a franchise, click here.