Get legal help with your franchise
Are you thinking of investing in a franchise business? Or have you been sold an illegal franchise agreement? Have you broken your franchise agreement and face legal action for breach of contract? It is time to get legal help to buy a franchise or dispute your franchise.
What is a franchise?
A franchise is a business that operates within the trademark brand of another business, the franchisor. Franchises such as fast-food outlets, legal and accounting services are very common examples of business franchises. There is an agreement between the Franchisee and franchisor to carry on an identical business concern. The franchisee pays a fee to operate the business and royalty fees based on sales thereafter throughout the lifetime of the franchise. Distributing and selling the branded products and services preserves the identity of the parent company. The consumer should then recognise the brand wherever they purchase the products and services.
How can we recognise a good franchise for investment?
Many franchises advertise on the internet to potential buyers. Many internet sites and third-party agencies are reputable organisations providing a safe business environment for franchisees. Those franchises that are built on a solid foundation offer very good support ,for example, credible legal contracts. A well established reputable franchise will want to safeguard their reputation with clients or customers, and their products and service. This is very different from a franchise from ‘Joe Bloggs’ who has not even established business and believes that advertising for franchisees improve profits. Therefore, some internet sites can be a net for vulnerable people wanting to be successful entrepreneurs. Some of these franchises are scams and can leave a potential investor out of pocket of large sums of money.
What are the signs of a scam franchise?
There is lack of transparency in information asked for by the franchisee. They also ask you for a payment upfront for materials using a sales agreement than a legal contract. After that payment the support diminishes, and you are on your own. Also the franchisors do not seem to emphasise the contractual agreement. They present a sales script on how cost effective it can be to become a franchisee. The franchise seems too good to be true since it appears as an instantly highly profitable business.
Employee feedback on public forums may suggest that the franchise is not all that it makes out to be. The Franchisor promised high turnover, but turnover and profits and low in reality. You may find that ongoing support and training is poor and franchisee employees are becoming disenfranchised! It is also worth checking that a franchise is a member of the British Franchise Association who can monitor standards of performance of the franchise.
Get legal help to buy a franchise!
It is important to carry out research on a franchise with due diligence before investing your money into any franchise agreement. You need relevant information surrounding legal issues that you might need to know before committing to a franchise agreement.
Solicitors specialise in franchising assist in the establishment, purchasing or selling franchise businesses. They also deal with franchise agreements and breach of contracts if you have already invested in a franchise and unhappy with your franchise agreement.
If you have any enquiries about your investment in a franchise or are about to invest into a franchise agreement, then you can contact Finest Law for further assistance.
Contact our consultants through our booking system to further your enquiry.