In a prior life, before my retirement I ran a franchising company. It was fabulous the calls they got from all over the country. Sometimes I would be in Florida, & anyone desired to buy a franchise in New york. They desired to meet me, & listen to about the business, but it didn't make sense for me to fly out there, so I would hire a contract franchise salesman to go out & meet the individual & describe the business to them. Indeed, I learned a lot about franchise sales, & a quantity of the tactics that franchise salesman used.
Over the years, I never like that part of the business, I much more preferred walking the business after the franchises were sold, & helping the franchisees expand in to the marketplace. It appeared to me that selling the franchises was a hassle, & it was a complicated process because the franchise disclosure documents, at least ours were well over 250 pages, & over time they were expanded to very 400 pages with all the attachments. Thank God for regulations I used to think, I see the rules & regulations in the franchising industry have only gotten worse & more burdensome today.
Now then, often when franchisors are selling franchises in a specific region or territory, the best thing that can happen is when they have or more franchise buyers who are competing for the same territory. It seems to light a fire under the buyers, & give them a sense of urgency. This is nice for the franchisor, because it moves the franchise buyers along quickly in the franchise sales process. However, as a franchise buyer you require to be cautious not to be pushed in to something which may not be nice for you.
In case you are competing with other franchise buyers for a specific franchise territory, then you ought to beware. Don't let your emotions get caught up & used by the franchise salesperson because usually they will take advantage of the situation, & use this scenario to get you to buy, & sign on the dotted line, without negotiating specific terms of the franchise agreement, or asking them more detailed questions. It is important to ask lots of questions, it is important to do your due diligence, & that would include meeting current franchisees, & going & visiting them for a day.
That is something you ought to definitely do, but in case you are in a rush to buy because you don't require to miss out on a positive territory, you are liable to be rushed in to making a mistake. This can be bad for your future, thinking about most of these franchise agreements have 10-year terms, & one time you are locked in, getting out can be a actual bear, & a legal nightmare. Indeed I hope you will think about all this & think on it.
Over the years, I never like that part of the business, I much more preferred walking the business after the franchises were sold, & helping the franchisees expand in to the marketplace. It appeared to me that selling the franchises was a hassle, & it was a complicated process because the franchise disclosure documents, at least ours were well over 250 pages, & over time they were expanded to very 400 pages with all the attachments. Thank God for regulations I used to think, I see the rules & regulations in the franchising industry have only gotten worse & more burdensome today.
Now then, often when franchisors are selling franchises in a specific region or territory, the best thing that can happen is when they have or more franchise buyers who are competing for the same territory. It seems to light a fire under the buyers, & give them a sense of urgency. This is nice for the franchisor, because it moves the franchise buyers along quickly in the franchise sales process. However, as a franchise buyer you require to be cautious not to be pushed in to something which may not be nice for you.
In case you are competing with other franchise buyers for a specific franchise territory, then you ought to beware. Don't let your emotions get caught up & used by the franchise salesperson because usually they will take advantage of the situation, & use this scenario to get you to buy, & sign on the dotted line, without negotiating specific terms of the franchise agreement, or asking them more detailed questions. It is important to ask lots of questions, it is important to do your due diligence, & that would include meeting current franchisees, & going & visiting them for a day.
That is something you ought to definitely do, but in case you are in a rush to buy because you don't require to miss out on a positive territory, you are liable to be rushed in to making a mistake. This can be bad for your future, thinking about most of these franchise agreements have 10-year terms, & one time you are locked in, getting out can be a actual bear, & a legal nightmare. Indeed I hope you will think about all this & think on it.
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