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When starting a business, one effective way of hitting the ground running is to invest in a franchise.
Franchises provide an opportunity to become part of an established brand. These brands are often well know and have systems and procedures in place to ensure the quality of the service or product is consistent across all branches.
Some companies offer the opportunity to run your own business by using their established brand and procedures. This enables you to start a business with an immediate recognition of your brand and without the need to create the products and procedures from scratch. You have the chance to apply your own abilities to the running of a business without the initial challenge of building brand recognition.
Businesses offering franchise opportunities span a number of sectors and it is an increasingly popular business model. One common feature is the agreement that franchisors ask potential franchisees to sign. This agreement sets out the relationship between you and the franchisor including important details such as the franchise fees you will pay to use the brand, procedures and equipment.
The agreement is rarely short and usually complex and jargon heavy. We aim to make the agreement manageable and easy to understand. You need to know what your responsibilities and obligations are and also what you can expect from the franchisor.
Understanding this information is vital to your final decision on whether the investment in the franchise is viable. Realising your responsibilities from the beginning can help you to avoid disagreement and conflict with the franchisor in the future