Investigating a Franchise Opportunity

Franchise opportunities are a great tool for start-up businesses. For example:

  • Franchises offer industrial growth;
  • You have strong support from the Franchise when problems may arise; and
  • Franchises offer major marketing and advertising within the community.

franchise

Another great thing about a franchise is that they are regulated by the government. Under current federal law franchises have to be registered with the Federal Trade Commission.  A franchise owner has to provide the buyer with detailed information about the business, so the new owner can make a detailed decision about buying the business. Some information in this document may include:

  • A financial statement with relevant information;
  • The costs for starting-up the franchise and the costs of maintaining the franchise;
  • An outline of the franchise opportunities.

However, it usually is the franchisee’s responsibility to do their due diligence on the business.  If you have any questions regarding investing, start-up, due diligence, or termination of a franchise agreement, please contact us today, we will be happy to help.

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    Gulati Law