Franchising

Before buying a franchise, you must make sure that the terms are clear. Franchise agreement must be spelled out.

This is where franchise attorneys enter the picture. With him coming in between, the legalities are spelled out and therefore it wouldn't be as confusing. With their assistance, investing in a franchise business will be legitimate.

By consulting a franchise attorney who is knowledgeable when it comes to franchising, the purchaser would not only be assisted but also informed about the possible risks. At least with the franchise attorney beside the purchaser, the latter would consider whether he would invest or not invest on a particular franchise.

Here are some warning signs that you might be involved in fraud franchise purchases:

1. If the franchisor cannot disclose all important information to you, then he is probably hiding something. Ask your franchise attorney to consult with the franchisor. In that way, the franchisor will be required to show the important documents that you need to see before you make an investment.

2. Do not feel pressured to purchase a franchise or to make up your mind with the snap of your fingers. Any investment decision needs sufficient time to be thoroughly pondered on. If you can, you can converse with your franchise attorney about this. He will be able to help you be cautious with your decisions.

3. A franchise attorney will be able to distinguish unrealistic profits when he sees it. The franchisor with a successful business cannot promise you money the very minute you invest in his business. You must be very careful whenever the franchisor says that you can make a lot of money with little risk.

You must know that franchise succeeds because they operate in a system that is brought together under one trademark - such as buying power and group advertising. It may sound appealing for an investor but there is no assurance that a success is guaranteed.

A franchise attorney reminds you that there is no guarantee to make money. Franchise is a long-term investment and in order for you to take back what you spent, several years must go by before you do so. You cannot get rich quickly in this business, it is just not possible.

At least, by consulting a franchise attorney who has financial experience in the field of franchising, you get what you pay for. By seeking professional advice regarding legal and accounting matters, you will have a second opinion. If you do not follow professional advice, you might be kicking your behind later on.

Ask your franchise attorney to explain the complicated topics like advertising fees, copyright infringement, royalty payments and the effect of contract violations. You must always choose a lawyer that you are comfortable with. Plus, he must be someone you can afford. You have the right to know in advance how much initial consultations cost.

The franchise attorney can also help your study the estimate of initial expenses. In order to make the cost of buying a franchise appear to be cheaper than it really is, franchisors often underestimate these expenses. If the estimate is low, it will take a longer time for the business to actually produce a profit.

It helps to have someone beside you when you're making crucial decisions involving money - such as purchasing franchises. At least, if you are with a franchise attorney you trust, you will be sure of your decisions before signing on the contract.