What to consider before signing a Franchise Agreement

Considering that you have finally decided to buy a franchise instead of running the extra mile of opening your own business, you need to be clear on a few things before signing that franchise agreement. Ask these following questions from yourself or your associates before signing a franchise agreement:

ARE YOUR GOALS IN SYNC?

You need to understand your motives of running a business and ensure if the franchise will take you closer to your goal. There are a lot of business options out there, mostly all offering franchisees. So figure out what kind of business will suit your requirements.

IS THERE TRANSPARENCY IN YOUR AGREEMENT?

It is absolutely necessary to have transparency in your relationship at every level to ensure trust is being maintained. Don’t hesitate to inquire about the costs head. Review the entire franchise agreement. Consult your lawyer to be help your be appraised of any loopholes or any text that can be used to your disadvantaged. Proceed only if you are entirely satisfied with the agreement.

CAN THE FRANCHISOR SUPPORT YOU THROUGHOUT?

Buying a franchise is like partnering. Make sure that the franchisor is financially sound to see through all your setting up and development requirements. Talk to the other franchisees to survey if the franchisor lives upto his end of the agreement or not. Make an informed decision.

WILL YOU GROW?

Buying a franchise is not short term. You need to realize that now you are a cog in a wheel. A part of a family. So you need to ensure that if you even want to be a part of the network years later too. Make sure you are loyal and dedicated towards the franchisor.

ARE YOU FINANCIALLY SOUND?

There are numerous expenses involved in buying your franchise. There is no instant reward, and that needs to be considered if you can handle the expenses. Various financing options are available to suit your plans.   Franchising Roots understands all your franchising needs. We have a developed knowledge of franchising opportunities in India. Let us help to set up your franchisees throughout India. Contact us or log on the website to know more.