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Buying into a franchise business is often thought of as easy or less risky. Some even think that there is little work required as soon as you make the commitment and sign the franchise agreement. Nothing can be further from the truth. There are many franchisees who fail because they have the wrong impression or driving motivation for signing an agreement. There is more to franchising than people often see at face value. It is not a business that comes wrapped in a box complete with a pretty bow.

Just like any other business that you start from scratch, a franchise entails an equal amount of work and responsibility. You are also exposed to the same amount of risks as other enterprises. But there is no doubt there are some attractive advantages to franchising, according to startyournewfranchise.com, which still make it one of the most lucrative and popular business opportunities today. Here are the dos and don’ts of franchising that every new franchisee should know.

Do learn from the experience of others

When you begin your research, you should take the time to speak with other franchise owners and learn about their challenges and how they were able to overcome them. More often than not, they are willing to help those who are also interested in starting their own business. Don’t simply accept a franchise agreement offered to you by any company. Make a list of all the companies you are interested in and make the choice yourself.

 

 

Do take extra care in checking the franchise agreement

The general rule before signing an agreement is to seek legal advice first. Know what you are signing from a legal standpoint so that you have an idea about your liability to the company and vice versa. In addition to this, you should also check what is covered by the initial fee you paid. Don’t commit if the projected profits are not realistic. You should also verify the extent of training you will get from the company. How much is the company willing to spend on advertising and marketing materials for the franchise? Will they offer complete on-site training? Don’t just have an assumption that the company will do these things unless you have them all in writing.

Do prepare yourself for what the franchisor requires from you

Franchising is not a one-sided deal. Certainly, the franchisor also has expectations from someone who will be representing the company. Do your research and be prepared to answer questions from the franchisor. The franchisor will expect you to follow the rule book and the franchise agreement. You will not have complete control over business decisions since the company is still at the head of the business. You must set your expectations and learn to work as a team player even if you are running your own business.

Before signing a franchise agreement, you must also understand that a franchise is just like any business. It requires your full commitment and time. You must also take the time to orient your family about the demands of running your own franchise.

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