How To Buy Franchise

The market is full of opportunities and risks. In the field of franchising, we should grasp relevant knowledge and polish our eyes to win the real market opportunity.

When evaluating franchising opportunities, on the one hand, business knowledge is still important. On the other hand, investors need to understand the differences between franchises.

1. has a fixed term of franchise. Almost all franchising agreements have a fixed time limit.

Unless the franchisee is seriously unable to fulfill their obligations, most franchisees will meet the deadline.

2. development schedules: when a franchisee obtains a specific regional concession, usually referred to as a regional charter or a General Charter, the franchiser usually insists on the consent of the developer to fulfill the regional development schedule agreed upon by both parties.

This means that the franchisee must develop a number of licensed stores within a certain number of years.

3. intellectual property rights, one of the main clauses of franchise is the use of intellectual property.

Most franchisees have very specific and specific requirements on how to use their intellectual property rights.

This includes the permission of the franchisee to adopt the corporate logo of the franchisor, and sometimes, in order to achieve the uniform standard, the permitted person may have to purchase goods and equipment from abroad.

The right of 4. concession is not authorized to have the right of sub concession.

This means that the franchisee who has not obtained the concession can only directly run all his stores in his place.

It is very necessary for the willing person to consider the above situation and to make a request at the early stage of negotiations.

Many misunderstandings and contradictions in franchising are often caused by the lack of knowledge of franchisees in western style franchises.

Although the success rate of franchising is very high, it is not suitable for everyone.

Now let's talk about how investors should choose franchising business.

When choosing a franchising company to choose franchising companies, the company should look at the franchisee's statement of the franchise sale and historical records of the company.

If there is a lack of detailed explanation in the document, the franchisee should ask the franchisee if he is aware of all relevant circumstances before deciding whether to join a franchise system.

What are the specific aspects to be noted? 1. good business elements: these elements should include the following names or trademarks, good business concepts, good business images, proven products or services, excellent operation system, and very effective marketing plan. The above elements will help the franchisee to evaluate the competitiveness of the franchising system in specific areas.

In addition, visits to franchisees' offices and franchisees are absolutely necessary.

2. the real cost of investment is the need to identify real rather than projected investments.

It is necessary to check all cost items accurately, such as rent, deposit, pportation, wages and insurance, and so on, when people are not familiar with business.

These records can answer some important questions, such as: are the founders of the company still in charge of the company? Are CEO (chief executives) the main shareholders? How long have the directors and key managers joined the company? Have they participated in the failed franchising business? Who are the real "experts" in the company? Another possible franchisee is necessary to meet with the staff of the franchise company.

In any case, there is a high degree of rapport and trust between potential franchisees and franchisees.

4. franchisee's historical records, the franchise company not only shows that its business project is very good, but also shows that it is a good franchiser.

The basic information and statistics provided by the franchiser include: the length of the franchising time of the company, the number and location of the direct stores, the number and location of the franchisees, the number of shops that are closed or pferred by the number of foreign franchisees, the growth rate of the franchise network, and the Charters who have good record keeping are generally willing to meet the prospective franchisees and understand the situation.

To a large extent, the franchisee is a barometer of the franchising network. The franchisee who has the intention to join will not miss any opportunity to meet with the existing franchisee.

The level of training and support provided by 5. franchisees is probably the most controversial area in franchising relationships.

If the franchisor does not agree with the promise, it is easy for the franchisee to misunderstand the level of training and support provided by the franchisor.

Unfortunately, many franchisees promise too much to achieve.

Therefore, the franchisor's promise should be written in writing.

The franchisee must have a clear understanding of the level of training and support that the franchisor may actually provide, because these franchisees are usually thousands of miles away.

6. another obligation that may be controversial is the obligation of the franchisee.

Some franchisees have many obligations to the franchisee, and it is better for the franchisee to operate separately.

The obligations of the franchisee are usually included in the franchise agreement and are legally binding.

These obligations must be understood and agreed by the franchisee.

It is clear that investors should try to seek help and seek advice from others before joining the franchise business.

If the franchisee needs help and advice, what advice should he listen to those who are closely related to the success or failure of the franchise business? 1. franchisees can get good suggestions and information from them at any time.

If there is no such association in the place where the franchisee is located, then look at the franchise association to join the franchisor.

Most good and established franchisees are members of the national franchise association.

2., a trusted franchise consultant, before consulting the consultant, should check their history and understand the situation of those who have received their services.

A good consultant should keep in touch with the franchisee, the franchisee and others in the franchising business.

Their experience and information are very helpful for the distance between franchisees and franchisees across the gap between expectation, language and culture.

3. experienced franchisee lawyer should take legal advice on franchising agreements from reputable franchise lawyers.

The investment in franchising business requires the franchisee to have a keen insight into business.

Prior to the purchase of the franchise, the franchisee should be aware of the benefits and risks of the franchise, and must be satisfied with the resources provided by the franchisor, and understand that, even if a variety of precautions are taken, the purchase of the franchise is still risky.

Not all franchises are equal in business, but there are similarities and differences in franchise contracts.

It looks sure that it will succeed if it fails because of falling demand, recession or franchisee mismanagement.

It is an arduous task to look at the large number of franchising systems and distinguish the pros and cons.

The best tool for finding a successful franchise system or avoiding a poorly managed franchise system is research and learning.