After you have narrowed your search for a franchise business to THE ONE that best fits your personal and professional goals and financial resources, it’s time to engage the services of a qualified franchise attorney to review the associated Franchise Disclosure Document (FDD) and the franchise agreement contained therein. While you might be tempted to hire an attorney at a far earlier stage in the due diligence process (let’s be honest: navigating through an FDD is far from “reading for pleasure”), the investment is not warranted until you are ready to become part of a particular franchise system.
The Value of a Franchise Attorney
The Federal Trade Commission requires that the FDD be written in “plain English.” No such restrictions pertain to the franchise agreement itself, however. You will want an attorney, who is experienced in franchise law, to review the contract to ensure that it is within the norms for franchise agreements, which are notoriously slanted for the benefit of the franchisor. If there are some provisions that need adjusting, your attorney can negotiate those on your behalf. Additionally, your franchise attorney can help you determine the best legal entity for your franchise business, as well as assist you with the numerous other legal matters that accompany business ownership. There is no standard fee for the review of the FDD and franchise contract, and they can be wide-ranging. So, be sure to ask before engaging your attorney’s services. (more…)
Success Story: Pennsylvania
“Try and go about it in the correct way. Consult with the SBDC. It’s easy to not want to spend as much money and time, but by taking the proper steps first, you’re establishing a brand that can grow.” – Adam Sitz, Owner, Amped Apparel
Impact of working with the Shippensburg University SBDC: Adam Sitz attended Shippensburg University to pursue a college education. While at Shippensburg, he continued to develop the Amped Apparel business that he started as a teen and that is celebrating its 6-year anniversary this year. Today, Amped Apparel is an action sport and lifestyle clothing brand. Amped also sponsors multiple athletes in various action sports. Amped Apparel’s products include t-shirts, sweatshirts, hats, girls’ tanks, beanies, accessories, socks, bags, and eyewear. (more…)
The summer’s winding down and parents everywhere are on the hunt for the best deals on back-to-school shopping. You know what that means: Halloween, Thanksgiving, and Christmas are right around the corner. Back-to-school is the perfect time for small businesses to get a jump-start on their holiday marketing – especially when 15% of consumers start their holiday shopping as early as July.
Here are some ways you can get an A+ on your back-to-school marketing:
Don’t miss the first day of school. As you’re reading this, your customers have already started shopping. In fact, according to Google Trends, “search interest started trending up a week earlier than last year and a whole three weeks earlier than 2013.” Make sure your online properties – your website, Google My Business listing, and social media profiles – are updated to showcase what you have to offer.
Do your homework. Remember when you had to do summer reading homework to prepare for the first day of school? As a small business owner, your summer assignment is to study what your customers are searching for on Google Trends. This will help you stock and advertise your products accordingly – and even help you get ahead of the curve for the holiday season. For example, according to Google Shopping Data search results, combat boots are out and Disney Vans are in. (more…)
A potential franchisee seriously interested in becoming an entrepreneur will take several demonstrative steps throughout the ownership process. In this post, we focus on the financing options available to the franchisee. It is our hope that you will be able to avoid potential mistakes and find a suitable solution which matches up perfectly with your own financial position.
Allow us to introduce to you the Top-3 Pitfalls of franchise funding. Take heart, because making the right decisions will illuminate a path to success and growth. A costly mistake could jeopardize your break-even possibilities and even hamper your effort to achieve viability in the marketplace. Some of what you are about to read is just plain common sense, but you may find just find the “gem that keeps you out of a jam!”
Pitfall Number One – “Pump Your Brakes”
You’ve spent the requisite time in choosing to meet with a qualified franchise consultancy like FranNet, whose sole focus is matching the right opportunity with the right option just for you. You believe in the franchise concept, and you did your due diligence through the Franchise Disclosure Document process. You have arrived at this point because you were both cautious and prudent with your time in researching the development of your soon-to-be franchise. It’s time to explore financing options, not hit the gas and floor it. Stay as focused and patient as you have been up to this point, never let your emotions override the necessity for exploring any and all financing options – even if you do feel close to the finish line. (more…)