Blog

Selecting a Franchise: Making Sure You Choose the Right Franchise

The decision to purchase a franchise is a big decision but even larger of a step than deciding to purchase a franchise is deciding what franchise you want to purchase.  Much thought and consideration must go into deciding which franchise system you are going to invest your money and your time into.  It is a decision that must be looked at closely from all angles and aspects and requires much research and investigation on your part. 

Here are just some of the things you need to consider when selecting a franchise:

• Demand - Is the franchise you are considering buying selling products that are in high demand and will continue to be in high demand?
  
• Franchisor Experience - Does the franchisor of the company have experience and offer proper support to its franchisees?
• Competition -  Is there any competing business in the same area you are considering purchasing in?
  
• Franchise Territory - Does the franchisor allow other franchisees from the franchise to be within a certain amount of miles from the franchise you purchase or do they not have an agreement set up?
• Name Recognition - Is the franchise name well known and does the name associate with a good reputation that will result in your profits increasing?
• Costs - What are the costs associated with the start up of the franchise you are considering? What are the royalty fees that must be paid to the franchisor after you have purchased the franchise? How much are you willing to spend?
  
• History - Does the franchise have a history of bancruptcy, litigation or terminations? What is the franchise's financial history?
  
• Current Franchisees - What are current franchisees saying about the franchise system? Are they happy with the system or do they feel as if it is unfair and needs improvement?
• Experience, Skills and Knowledge - Do you have the experience, skills and knowledge necessary to run the franchise you are considering purchasing?
  

All of these questions and more are valid questions to consider when searching for a franchise and deciding which franchise is right for you.  Using all resources available to you when conducting due diligence for your franchise purchase will allow you to make an educated and well thought out decision when purchasing a franchise.  Having a lawyer review the Franchise Disclosure Document (FDD) will answer a lot of these questions after you have conducted your own initial due diligence by speaking with other franchisees and with the franchisor.  The FDD will contain information regarding the history of the franchise and will reveal any information regarding the financial history of the franchise and legal history of the franchise.

When choosing you will want to speak with an experienced franchise lawyer.  If you are considering purchasing a franchise in New York or New Jersey and would like speak with a New York franchise attorney contact Charles Internicola at 718.979.4300.  Charles Internicola is a franchise attorney who represents franchisors and franchisees in New York and New Jersey but also represents clients nationwide.  If you would like to speak with Charles Internicola and live outside of New York you can call toll free at 800.976.4904.