How Franchise Lawyers can help you find the Franchise that is right for you

When the economy enters a rough patch and corporations are forced to tighten their collective belts, downsizing is inevitable. In the old days, when seniority actually meant something, the last man hired was usually the first one fired. But that is not the case anymore. Millions of midlevel employees lost their jobs during the Great Recession simply because they had higher salaries than their younger coworkers. Many of these mostly middle-age employees were subsequently unable to find jobs, since no one was hiring older workers with higher salary demands. They wanted younger applicants they could hire on the cheap. What do you do when you’ve got 15 or 20 years to go before retirement and can’t find a job? Millions of Americans have taken the plunge and embarked on their great “second act” by starting their own businesses. Because they are much safer and more secure, many folks strongly consider buying a franchise instead of establishing their own store. Why are they safer? The most crucial period in the life of any business is in the first five years. According to the Small Business Administration, about 50 percent of new businesses fail in this time frame. Since most new owners get loans from the bank, the number one reason for failure is debt. Scrimping and saving alone will not help a business turn a profit. They must actually spend money to make money, which means advertising. Failing to get the word out is a common mistake most new owners make because they are desperate to pay down their debts. Franchising solves this issue. When you operate under a trademark, like McDonalds, for instance, the brand has instant recognition. You don’t have to advertise or get the word out because everybody already knows about the Golden Arches. Franchising also take the guess work out of operations, since the franchisor will provide you with their proven business model and will even help you train your staff. Of course, like any business, there are risks. Management There are many reasons why some franchises fail and others succeed, but the most salient one would have to be their corporate management team. Remember, the reason you are buying a franchise is that it offers more security, and successful franchises do this by taking a hands-on approach. They do not give their franchisees much leeway or creative control. New owners are expected to do things their way, or they may be penalized. This is a good thing. As any franchises attorney will tell you, the more specific the contract, the better. Most agreements are non-negotiable, which means they have faith in their system. It is the companies that offer ambiguous and even incomplete contracts that you and your franchise attorneys should be wary of. In other words, you shouldn’t have to keep asking them to clarify this stipulation or that stipulation. The contract shouldn’t leave anything open to question or to chance. Rules are (usually) good Even without the help of a team of franchise attorneys, the agreement should be rife with things that you, the franchisee, must do if you decide to sign the contract. These obligations should be simple and straightforward. It is important to note that while rules are generally a positive sign, since it shows that the franchisor has a proven plan, sometimes these contractual provisions go over the line. If you are uncomfortable with any of these stipulations, discuss them with your franchise attorneys or find another franchise to pursue.