Franchising can be a great way to operate a business by reducing the complications that often challenge start-ups. So, what is franchising exactly?
It’s a great way for someone with a passion for business to hit the ground running when operating a business. It means that you don’t need to have a fresh idea from the get-go – you can operate an existing brand. And with that brand, you can also get the added benefit of recognition and vendor relationships.
As posted on the Government of Canada website, there are a few key details that you may want to discuss with an experienced business lawyer before you make the leap into franchise ownership.
While there are a lot of great advantages to owning a franchise, the process doesn’t come without its share of risks. What legal protections are in place for the franchisee? What are the possible liabilities? How much support will you receive from the franchisor, and how much will you be responsible for on your own?
It’s important to have clarity on these issues. Should problems arise, you want to make sure you understand what is expected of you, what is expected of other parties, and what you can do if there are disagreements or if issues escalate.
Picking the Right Franchise
Different franchises may have different or unique operating procedures, depending on the business. You want to make sure that you choose a franchise that is right for you. Have you done your research? Is the industry/product/service something you are confident you can operate? If you have any questions, it’s best to get them answered by legal professionals, or other specialists in the industry, depending on the inquiry.
It’s best advised to seek legal clarity before making important business decisions. Contact a corporate lawyer if you have any questions and to avoid potential issues by having him or her review any contracts or agreements.