Franchisor Responsibilities (Part B)

Franchisor Responsibilities: Pre-Opening

There are specific responsibilities that a franchisor will have before, during, and after an opening. These are some of them before an opening:

• Help search for and negotiate location(s) of business;
• Help conduct a feasibility study and work with a bank;
• Organize the sales outlet;
• Train the franchisee and any staff; and
• Provide guidance for some administrative procedures.

Prior to the opening, a franchisor is basically laying the foundation for a successful business. During the opening, a franchisor's responsibilities may include:

• Delivery and installation of products;
• Delivery and installation of furniture, equipment, accessories, etc.;
• Launching the business using various forms of publicity; and
• Assisting in the opening of the business.

Franchisor Responsibilities: Post-Opening

A franchisor's guidance and support are particularly crucial during the tenuous early days of the fledging franchise. Your input and leadership are important to ensure success and to get the business to the point where it can flourish without your constant attention. After the opening, some of the responsibilities of a franchisor may include:

• Providing continued training to franchisee and/or staff;
• Working on advertising and marketing programs/campaigns;
• Conducting meetings, seminars, training programs, etc.;
• Developing committees;
• Periodically stopping in to provide assistance, encouragement, etc.;
• Providing telephone assistance;
• Organizing the transfer and processing of information between yourself and the franchisee; and/or
• Complying with contractual and financial obligations.

It's at this point where a franchisor is concerned with analyzing the results of the business and then providing solutions or advice that can help make the business a success.

A franchisor has many other responsibilities that require good business skills. At the same time, it is important to understand that owning and operating a business requires a good understanding of what your obligations are. These are established in contracts or agreements.

When to Contact a New York Business Lawyer

A New York business lawyer can help you not only understand your legal obligations but can help fight for your rights should you become involved in a dispute stemming from a business relation.

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