Practice Areas
Blog 
Franchisee Services
- Healthy Fast Food Announces SBA Franchise Registry Listing Approval for U-SWIRL Yogurt Franchise
- Some Franchise System “Characteristics” to Consider When Buying a Franchise
- Purchasing Multiple Franchise Units: What You Need to Know
- Guide to Purchasing a Business or franchise (Second Edition)
- Franchisees Turn to Franchisors for Loans to Purchase a Franchise
Legal News
- Release of Second Edition of Charles Internicola's Book...
Posted on 8/6/2010
Library
Franchisee Services
- Franchise Agreements are Negotiable: What Franchisees Need to Know
- Franchise Agreement "Protected Territory": What you Need to Know Before Signing a Franchise Agreement
- Buying a Franchise: Information that You Need to Know about your "Protected Territory
- Franchise Agreement: Factors that you Must Evaluate and Negotiate before Buying a Franchise
- Petroleum Marketing Practices Act: Wrongful Termination of New York or New Jersey gas station franchise
Franchisee Services
Examine Franchise System Value When Purchasing a Franchise
Franchise Lawyer Charles Internicola in a recent blog post "Buying an Existing Franchise: Is there Value in the Franchise System?" explains the importance of conducting due diligence when purchasing a franchise or an existing business.When purchasing a franchise or an existing business most of the steps of due diligence are the same. One exception to the due diligence process that prospective franchisees will encounter is figuring out if there is value in the franchise system.
Value in a franchise system is important to you as a franchisee because, unlike an independently operated business, franchises require franchise fees and royalty payments so ensuring that the franchise system you decide to become a part of is a valuable franchise and is run by a supportive franchisor is key.
When deciding the value of a franchise here are some things you may want to consider:
- Higher sales do not necessarily mean that you will be making higher profits - Unlike an independently operated business a franchise requires that royalty fees be paid to the franchisor. Royalty payments are usually based on a percentage of your gross sales at your franchise location.
- Make sure the franchise you are considering is properly run - Some franchises offer an adequate amount of help from the franchisor while other franchisors poorly run their franchise and offer the franchisees little to no help.
Investing time into finding out if it will be profitable for you to purchase a franchise based on the value of the franchise will save you time and money in the long run. When searching for the right franchise you will want to ask questions to the franchisor and will also want to speak with other franchisees in the franchise and ask them questions you may have regarding the value of the franchise and the way it is run.
Charles N. Internicola is a franchise lawyer who represents individual and established franchisees throughout the United States, in all fifty states, including New York and New Jersey. Charles is the author of "An Entrepreneurs Guide to Purchasing a Business or Franchise" and the editor of the "Franchise Law Blog". If you a buying a franchise, it is important that you obtain an independent evaluation of your franchise agreement and FDD from an experienced franchise lawyer. Contact Charles Internicola to discuss the services that he offers to protect franchisees before you sign any agreements.
If you are considering the purchase of a franchise or business, for a limited time you may receive a complementary no obligation copy of Mr. Internicola's book, "An Entrepreneurs Guide to Purchasing a Business or Franchise" where you will find helpful information and facts.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.
There are no comments.
Post a comment
Post a Comment to "Examine Franchise System Value When Purchasing a Franchise"
To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."
More Information
To obtain information about our business and franchise law services complete the form below:
Charles N. Internicola, Esq.
New York, New Jersey
and Nationwide Legal Representation
Phone: 718. 979. 4300
Toll Free: 800. 976. 4904
Get Directions
Note:
Your information is confidential and is not used or sold for marketing purposes. We accept no duty and no representation without a written contract setting forth terms of representation.
Video Library
Franchisee Services:
- What is an FDD (Franchise Disclosure Document)?
- What is a Franchise Agreement?
- What is the Purpose of an FDD (Franchise Disclosure Document)?