A recent article posted on Blue MauMau between Don Sniegowiski‚ reporter and founder of Blue MauMau‚ and Robert Tingler‚ former Illinois franchise regulator‚ offers tips to help franchisees make an educated decision when purchasing a franchise. Mr. Tingler's 23 years of experience in working in the Illinois attorney general's office is extremely relevant and his insight into the pitfalls and perks of franchising‚ where improvement is needed‚ and what franchisors and franchisees can do to make buying a franchise a smoother and less risky transaction is definitely worth reading.
When asked questions pertaining to how the franchise purchasing process may be made easier and less risky for franchisees Mr. Tingler offered the following tips:
- Always perform extensive due diligence;
- Hire the correct professionals for the purchase you are making such as a franchise lawyer‚ accountant‚ and in certain circumstances a consultant;
- Do not fall into the trap of believing that renting an adviser of any kind is a waste of money because the due diligence questions and answers are "already covered" in the FDD;
- Do not rely solely upon the method of receiving advice by glancing at the franchise's FDD and asking a salesperson's answer;
- Try to establish a relationship with the franchisor prior to signing any agreements. This will help determine if the franchise is a good fit for you and will provide you with the opportunity to have important questions addressed;
- Understand the realization that if a concern is not addressed in the contract the chances of willing a future argument because of assurances allegedly made by a salesperson are virtually nonexistent for the franchisee.
For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola‚ Esq. or contact our law office to schedule an appointment by calling 1-800-976-4904.