It’s Business, And It’s Personal

Here’s what entrepreneurs need to know about franchises

| Feb 28, 2019 | Buying & Selling Businesses |

Building a franchise from the ground up is a lifelong dream for many people. This process could result in an incredible amount of financial freedom, but entrepreneurs should spend some time researching all the pros and cons of investing in a franchise. Buying into a franchise in North Carolina could be quite lucrative as long as the investor understands all of the potential risks.

The biggest benefit of purchasing into an existing franchise is having a solid foundation. Most franchises have extensive support networks for their franchisees, and that takes quite a bit of guesswork out of this process. Many franchises also have world-class training programs for the investors and their management teams. As an added bonus, larger franchises usually offer excellent financing options to qualified investors.

Those who have always dreamed of running a business might not enjoy just how restrictive franchise corporations can be. Business owners and their management teams must adhere to very specific rules and regulations if they don’t want to be fined by the franchisors. Another drawback that many franchisees never even consider is the royalty agreement. While some franchises have relatively low royalty payments, others require a huge percentage of any income that a store brings in.

Buying or selling a business can be a complicated process. Therefore, entrepreneurs should never try to navigate those waters alone. With an experienced legal team by their side, an investor won’t have to worry about making any major mistakes that will cost them money in the long run. A business attorney can also help an investor separate their personal assets from their company assets, which could reduce risks if any major business mishaps occur.

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