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Getting The Most Out Of A Franchise
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Getting The Most Out Of A Franchise

Getting The Most Out Of A Franchise

Franchise Article Author: The Franchise Guide

It is preferable to franchise an established and reputable company.  The company that you should consider to franchise must also have an evidently successful system in place and an effective framework for transferring expertise to the franchisees.  Unfortunately, these established companies can be quite unbending when it comes to franchise agreements.  After all, they have the upper hand.

But even if the franchise companies leave you less room for negotiations than you might want, it doesn’t mean that you cannot get the best deal out of a franchise venture.  You just have to know what to do and how to utilize what little bargaining power you may have at your disposal.

The first room for negotiations is the franchise agreement. Even if it is written in bold black letters that the terms are nonnegotiable, you still have to try and see what you can do to negotiate more favorable terms.  Consult a franchise lawyer and see what changes can be instituted that will minimize unfavorable stipulations.  At the very least, the franchise lawyer can help you understand the franchise agreement better and help clear up any misconceptions that you may have about it.

Whenever you meet with the franchise company’s representative, be sure to take notes.  Everything said and done by the franchisor should be noted.  Take special care to record informal promises by the franchisor.  When the franchise agreement does not mention these promises, be sure to negotiate for their inclusion.

As for the stipulations that cannot be changed to your advantage, you have to make sure that you prepare for any eventuality that may arise because of them.  Know your rights under the law and work with other franchisees that belong to your franchise company.  Join franchise associations that could be valuable sources of aid and information.

As the franchise relationship progresses and you feel that you cannot meet the franchise criteria that the contract says you have to attain, do not meekly wait for the franchise termination letter.  Franchisors do not like failure more than you do for it does not do much good for the franchise company’s image and reputation.  Try to renegotiate your terms and your performance benchmarks.

Finally, the best way of getting the most out of a franchise is making sure that you do everything in your power to make your franchise succeed and meet the performance criteria that you have been set.

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