There are many advantages to franchising your business, one of the greatest being that it is possible to achieve a fast growth of your business without making a large capital investment. Franchisees invest their own money and will be keen to keep costs low and sales high. They will also be responsible for maintaining their own premises. It is a good way to create new outlets for your products or services.
In order to attract suitable franchisees, a prospectus should be prepared that gives accurate and clear facts about your business. This should be checked by a lawyer and it is advisable to use a specialist commercial lawyer to do this and draw up your legal contract, because this document will set out all the terms under which you are selling the franchise, your obligations and those of the franchisee. This contract will also make sure that adequate controls are put in place to protect both you and the franchisee.
Our Commercial Team are experienced in guiding clients through this process. Head of the team, Matthew Fretten, says “Although there are many benefits to franchising, there are some disadvantages as well. Be aware that your initial investment cannot be recovered until you start to receive fees and a regular income from the franchisee, and you will receive only part of the profit made. Recruitment of suitable franchisees is very important – they need to have the appropriate skills and attitudes which reflect your own business reputation. You will need to monitor performance and quality standards of the franchisees to protect the good name of your company. Our specialist team will be happy to discuss all aspects of franchising with you and whether it may suit your business. Contact us to arrange a free initial, no obligation appointment.”