What You Need to Know Before Becoming a Franchisee

Posted on Jun 13, 2016 in Business Law

What You Need to Know Before Becoming a Franchisee

Having a franchised business can be very rewarding. If done right, the opportunity to run a business that also is affiliated with an established brand name and company can not only be profitable, but it can bring a sense of recognition, respect and accomplishment. A well-run business can have the ability to stand out as an integral and vital part of the community.

If you are thinking about becoming involved with a franchise agreement, it is crucial to get an independent adviser. When trying something new for the first time, you will want someone on your side who will help you with the various aspects of business law.

The first thing you need to understand about business law is that this type of arrangement is not to be taken lightly. All franchise agreements are regulated by the Federal Trade Commission. There are also state agencies in Connecticut who enforce rules such as disclosure laws, registration laws and relationship laws. Because the penalties for violating any of these business laws can be steep, it is imperative that everything is fully understood before taking on the franchise responsibility. Further details about some of the different rules and regulations can be obtained by visiting: http://www.franchiselaw.net/startups/usfranchiselawbasics.html

In addition to making yourself familiar with the disclosure, registration and relationship laws of Connecticut, you may have several questions about a number of aspects of being a franchisee. Things you might think about include: How do you make a fair franchise agreement? How do you put together a business plan? What should you do about financing the project? What methods should be used to determine a location? Other resources about the process can be found at: http://www.franchiselawsource.com/prospective_franchisee_solutions.html

Trusting BoneeWeintraub will help you through this exciting and challenging process. The key thing to realize is that the franchise broker, the franchiser itself, the real estate broker and the landlord all have certain interests in mind, and they are not always in tune with your own. Consult with BoneeWeintraub, and you can be assured you will have a great adviser to help you understand the laws!