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Steps to take when purchasing a franchise

On Behalf of | Oct 21, 2017 | Buying & Selling Businesses |

North Carolina residents may be able to achieve their dream of being an entrepreneur by buying an existing franchise as opposed to starting a business from scratch. When a franchise is purchased, the business owner acquires a license to use another company’s products or brand name. Format franchises are the most common arrangement. This is when a company gives the franchisee a brand name and other materials to start the business right away.

In such a scenario, a franchisee will receive training, marketing assistance and other help needed to be successful. In a traditional franchise arrangement, the focus from the franchise is more on the product as opposed to how the business is run. Ideally, a person will choose to purchase a franchise that has a notable brand name. This may increase his or her ability to survive as a business owner for five years or longer.

Franchisees can improve their odds of success by working with companies that support them. It is also important that a potential franchise owner thinks hard about what types of companies that he or she would be best suited to operate. This may include considering the type of hours that a person would like to work, where he or she would like to work and how much money is available to start the business.

Those who wish to purchase a business may have a lot of due diligence to conduct before making the purchase. An attorney may be part of a team that may help an individual conduct that research. Having legal counsel may also be helpful when it comes time to draft, review or sign a purchase contract. Having such assistance may increase the odds that a business owner realizes a profit on his or her investment.