Franchising ? Jacksons Law Firm discusses your options
The UK’s franchise industry bucked the recessionary trend during 2009, according to a recently published survey. Commenting on the figures, Jacksons Law Firm’s franchising solicitor, Colin Walsh, is encouraged to read that 9 out of 10 UK franchises are profitable (compared to around 7 out of 10 during the recession of the early 1990’s).
The annual NatWest British Franchise Association survey reveals that the franchise industry as a whole contributed just short of £12bn to GDP, with average turnover figures rising by close to 3%. Colin comments: “Without question, such heartening figures may well encourage opportunity-seekers to look at buying into a franchise and, while this may be a prudent move, running a franchise is by no means a guaranteed path to riches. Dedication and commitment are pre-requisites to achieving success in any new business venture, and taking on a franchise requires no less devotion.
“Before taking the plunge and paying over the franchise fee, a potential franchisee needs to ask himself what exactly it is that the franchisor will be providing throughout the term of the relationship. Whether the driving force for taking on the franchise is the reputation of the franchisor, the day-to-day assistance received, or the referral of business, you need to make sure that what is received represents value for money. As part of this process, you ought to consider the alternatives- would you be better off using the funds to kick-start your own business? Also, speaking with existing franchisees provides an invaluable insight into the business, and you ought to be cautious of any franchisor who tries to inhibit discussion between potential and existing franchisees.
The next task is to consider the detail of the agreement. Franchise agreements are often very arduous on the franchisee and you need to be fully aware of the obligations being asked of you, and just as importantly, the consequences of failure to comply. The advice of a British Franchise Association affiliated solicitor will help you to avoid the potential pitfalls of the agreement and will assist you in making an informed decision as to whether a particular franchise is the right one for you. However, once done, you can focus on growing your franchise business and building success for the future.
Jacksons Law Firm has a dedicated franchising team with experience of advising both franchisees and franchisors. Colin Walsh is a British Franchise Association Affiliated solicitor with Jacksons Law Firm.
This was posted in Bdaily's Members' News section by jan wilson .
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