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Do franchisees have to follow company policy?

On Behalf of | Dec 31, 2020 | Franchise Law |

If you’re thinking about starting your own business in Florida, owning a franchise can be a great way to get some business experience without building from the ground up. You’ll be able to work with a successful company and get support from higher-ups along the way. However, if you’re looking for complete control over your business, owning a franchise might not be the right decision for you.

Does a franchise have to follow corporate policy?

Under franchise law, you’ll have to follow corporate policy to some degree. The company might allow you to make your own decisions in certain areas like training employees or improving employee morale. But overall, you’ll have to stick with corporate policy on certain issues like branding, recipes, pricing and hours of operation.

Every company has an image and a reputation to maintain. As a result, they can’t allow franchisees to make changes that would affect the company’s reputation. If you don’t adhere to company policy, your franchise license might be revoked. Once you sign a contract to own a franchise, you’re legally obligated to abide by that company’s rules. The rules can vary across different states, so do some research if you’ve recently moved to a new state.

Do you need to hire an attorney when you become a franchisee?

Whether you’re new to the business world or have owned businesses before, becoming a franchisee can be a complicated process. You could get tied up in legal issues that you didn’t see coming if you’re not careful. Additionally, some opportunities are better than others, so you need to know exactly what you’re getting into.

An attorney may help you review your opportunities, work with the company and become a successful franchisee. A legal professional may also help you figure out an exit strategy when you’re ready to leave the business.