You started your own business some time ago and are looking for opportunities to take it to the next level. Something that keeps popping up is franchise opportunities. Franchise models have the potential to work very well, but they must meet your specific needs.
In business, as well as knowing when to grab an opportunity, it’s equally as important to know when to walk away. Outlined below are a few reasons why you might want to reject a proposed franchise opportunity.
A lack of formalities
In business, it’s best to protect your assets through legally binding agreements, even when working with people you trust. There are occasions where oral agreements and informal arrangements can be legally binding, but these are typically much more difficult to enforce in court. Are you being encouraged to forget about legal contracts until further down the line? This could be a sign that something is amiss and it may simply not be worth risking your hard-earned business this time. Other opportunities will always come up.
A lack of data
Successful franchises operate across the country and are visible in almost every major city and town. These businesses not only have the image and branding, but they also have the numbers to back it up. If you’re approached with a potential franchise opportunity, it’s important to examine the numbers in further detail, so that you can establish a proven track record. Going into any business without first having data in your hands can be very risky.
The right franchise model can take your business to the next level, but the wrong one can see much of your hard work undone. Before committing to any agreements, it may be best to seek legal guidance from someone with experience in this field.