With the development of multiple branch business outlets, business franchising has become very popular. Successfully undertaken, business franchising can greatly benefit the parent company as well as the franchisee. However, the franchise model differs from normal business ownership in some striking ways. It is a good idea to consult with a Montgomery Business Attorney before you venture into franchising.
What Is a Business Franchise?
When you open a business you have the option of either ownership of all business units, franchising the entire operation, or owning parts while franchising others. A good example is McDonald’s Corporation. The parent company retains ownership of many of its restaurants, but sells franchises to others. Exactly what percentage of an operation should be franchised for optimal growth and fiscal strength is dependent upon a large number of factors, and any company considering franchising should work with a Montgomery Business Attorney to make this determination.
Some Important Considerations
Before you decide to purchase a franchise it is important to take into consideration the fact that you are, in essence, joining partners in an already established and successful venture. The advantage of this is obvious—you do not have to establish name recognition, and much of the marketing is done by the parent company. However, as your Montgomery Business Attorney will tell you, you give up certain freedoms in the process. In most cases you must adopt the logo, business model, pricing, and operations of the parent company. If you are very creative and enterprising, you may feel constrained by such limitations.
A Montgomery Business Attorney Can Help You with Your Franchise
Whether you are a trying to decide whether to sell franchising licenses to your business or wish to purchase a franchise, it is important that you work with a Montgomery Business Attorney who can direct you through the process and help you decide whether a franchise best suits your goals. Call Peterson Law Group to arrange a consultation today at 979-703-7014 or 936-337-4681.