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Buying a Franchise: The Initial Steps of Purchasing a Franchise

Purchasing a franchise is a very big decision and making sure you are aware of the proper steps to take when purchasing a franchise are taken is critical.  Purchasing a franchise is something that requires much though and attention rather than being a spur of the moment type of thing. 

When considering the purchase of a franchise there are a few initial steps that will need to be taken by you before you hire a franchise lawyer (a franchise lawyer will review your franchise agreements, Franchise Disclosure Document (FDD) and will negotiate with the franchisor on your behalf).  The initial steps that should be taken before you sign anything with the franchisor are:

• Finding the right franchise - Making sure you choose to become part of a franchise that your are interested in, skilled in and think you can achieve your business goals in is very important.  Make sure the franchise you are thinking about becoming a part of is profitable business.  Do your research.
• Contact existing franchisees in the same franchise - Contacting other franchisees who are already a part of the franchise you are considering buying is very beneficial.  By contacting other franchisees you will be able to find out if the franchise is profitable, what issues other franchisees may be having with their franchise business or with the franchisors, in short it will allow you the opportunity to ask the person who would know best how the business is run, the existing franchisors. 
• Contact a franchise lawyer - If after conducting due dilligence for purchasing the franchise you are interested in you will want to contact a franchise lawyer.  Franchise lawyers are not necessary when purchasing a franchise but may find that not hiring a franchise lawyer for their transaction often results in more headaches than anything.  You need an experienced franchise lawyer to review your franchise agreement, FDD and to speak to the franchisor on your behalf to make sure your concerns and needs are being satisfied by the franchisor.  Not hiring a franchise lawyer can result in a higher costs and unhappiness as a matter of a fact if you do not have a franchise lawyer who is representing your best interests you could end up being out of more money than if you would have paid a franchise lawyer's fee. 

Making sure that all of your grounds are covered when you are purchasing a franchise is key.  Make sure that no step is over looked and no question is left unanswered.

Charles N. Internicola, Esq., a partner at the Staten Island law firm of Decker Decker Dito & Internicola, LLP., is an experienced business and franchise lawyer who represents individuals and experienced business owners in business transactions and business litigation in Staten Island, New York City and New Jersey. Charles is the author of the book "An Entrepreneurs Guide to Purchasing a Business" and he is the editor of the New York Franchise Law Blog.  If you are involved in a business transaction, purchasing or selling a business, establishing a franchise system or involved in a business dispute, contact Charles Internicola to discuss the specialized legal services that he provides to his clients.

IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.

Labels: due dilligence FDD franchise agreements franchise attorney franchise disclosure document franchise lawyer franchise lawyers fee initial steps negotiate profitable business purchase of a franchise purchasing a franchise