It may be helpful to readers
who may have been down sized to understand that, while the desire to leave ‘all
that’ behind and go into business as a franchisee may well lead to a very
satisfying and remunerative new career, our recent practice counseling
franchisees who ‘leapt’ with enthusiasm, but without proper up-front business
or contractual due diligence, suggests that even a modest ‘stop, look and
listen’ with your business and legal advisor can pay great dividends.
The business matters most
often overlooked, or given a quick “pass,” are whether there is an adequate market
for your product or service; and, in the location which the franchisor heartily
‘suggests’ as golden. These are business issues for your attention. Although
when you meet your counsel you may already be convinced that your franchise
opportunity is ‘it,’ we suggest that you consider being open to discussion of
the relationship between business issues and risks, and the terms of the
franchisor’s usually long and detailed contract.