Franchising is and has always been an alluring business model. With franchising, you would already have a company to support and guide you all throughout. Plus, you already have a marketing strategy in place — all you have to do is follow it and ask if you can tweak the strategies a little bit (if you want to, of course).
Below, we will discuss things that you should be aware of so you can be sure that you would not be involved in a fraudulent fast food franchise opportunity:
They’re Being Dishonest
Always ask your franchisor a couple of questions before deciding on buying a franchise business from them. You would never want to work with someone who’s being dishonest with you, right?
The franchisor has to be transparent when it comes to the business. Sure, there are confidential things they cannot share with you, but you have to be aware of certain things, such as the business model and what their marketing strategies are. If they seem like they are withdrawing vital information from you, then run away and look for a certified and licensed franchisor.
Contact Other Franchisees
If you want to know how the franchisor deals with things about their business, then it would be best to talk about current and existing franchisees. Ask them if the franchisor and the team are always there to support when a problem arises. You should also ask how they solve these problems and if they offer full support to the franchisee.
You can then ask them about other queries or questions that you might have about the franchisor, as they would be the best people to answer these questions since they are able to experience everything first-hand.
Make Sure the Documents are Legal
In this day and age, everything can be replicated. There are tons of paperwork that are involved when it comes to buying a franchise, and it is your job to check if each one is legitimate.
Always have a lawyer and ask them to check all the paperwork the franchisor will be providing. Review the papers with them and ask if they see anything unusual or suspicious with them.
Disclosure Period and Documents
Franchisors should provide you with legal disclosure documents before making you sign the paperwork. Check these with your lawyer and see if every single detail is accurate. These documents should include information regarding the business and franchise itself, which is why it is a must to check everything.
Also, if the franchisor is urging you to sign these papers right away without reading it, then there might be something they do not want you to see. Remember that you usually have 14 days to think about signing the document. This is mandatory and every franchisor should give you this time period to think about signing the documents.
Do your research and ask the right people before signing papers regarding any type of business. It’s always better to be safe than sorry, especially if it involves money.