When you return from active duty, it can be difficult to figure out what’s next employment-wise. Starting a franchise is a great way to get yourself back into the swing of life as a civilian, but there are some things you need to consider first. Remember—starting a franchise is a huge investment. A well-executed and managed franchise can mean the difference between a life-changing success or a complete waste of time and energy. Because starting a franchise requires such a large initial investment, it is important to make sure that you do thorough research before signing your franchise commitment. Here are three people you should talk to before starting a franchise.
A Lawyer
Even if you believe you’ve covered all the basics when forming your business plan, speaking to a lawyer who specializes in franchise law can be crucial to your success. Many franchise questions can be best answered by a lawyer. Franchise lawyers can answer questions such as regarding any of the restrictions and obligations you’ll need to abide by so that your franchise agreement doesn’t get terminated. In addition, all franchise owners will receive the 100+ pages of the Franchise Disclosure Document or FDD. This document covers everything that the Federal Trade Commission requires the franchisee to understand. Franchise lawyers can help you get a better understanding of the legal aspects of your commitment and also update you on any changes in franchise law.
Current Franchisees
In addition to talking to lawyers who specialize in franchise law, you should also consider talking to current franchisees before starting your franchise. Current franchisees live the day-to-day aspects of their businesses, so talking to them can provide valuable insight to help you decide if a particular franchise is one you’ll enjoy. Talking to current franchisees can help realign your expectations with the current state of the franchise industry. Among the topics to bring up with current franchisees, consider asking questions such as the length of time before they saw a return on their investment, how much training the franchisor provided, whether there were any hidden fees involved and whether the franchisor provided any other support after the franchise was set up.
The Franchisor
In addition to franchise lawyers and current franchisees, don’t forget that you can also set an appointment to speak with franchise recruiters. Although you could expect the franchisor to be more actively involved with convincing you to start a franchise, there are many other pieces of information you could glean from them as well. You’ll definitely want to hear the cost info from them and check if it matches what you’ve been told by franchisees. If it is drastically different, something might be wrong, and the last thing you’ll want from the franchisor is a misleading start. You can also obtain more information about training and support from them, in addition to detailed information about the competition and the market.
Starting a franchise can be an exciting new venture in the next phase of your life. However, as with all business ventures, it is important to know the market and the legal aspects of any new business decision. By talking to franchise lawyers, the current franchisees, and the franchisor, you’ll be able to grasp a larger picture of what you’re getting yourself into. The more information you have, the higher the chance of success.
Author Harper Harmon is a freelance writer and blogger who focuses on business, health and other various topics. She graduated with a bachelor’s degree in communication from UCLA and currently resides in Santa Cruz with her dog, Sassy.
