Sharing a franchise may sound like a good idea if you are interested in buying a franchise and do not have enough funds or feel as if you do not possess the ability to manage a franchise on your own but there are some important issues to consider prior to sharing a franchise with another person‚ especially a person you do not know.
A recent article by The Street reviews a fairly new website that is now available for individuals interested in buying a franchise. The website is shareafranchise.com and is a “dating site for entrepreneurs”. Individuals interested in purchasing a franchise but do not want to do so alone create a profile on the site and then try to match up with other individuals interested in purchasing the same type of franchise and in the same location. The two individuals can then evaluate if they want to buy a franchise together and become co-owners of the franchise location. The site also has the ability for the franchisor of the particular franchise to be a mediatory on the site between the two potential franchisees.
Considering Buying a Franchise? We recommend reading:
“The Entrepreneurs Guide to Purchasing a Business or Franchise”
Concepts such as shareafranchise.com are unique and useful in finding someone to share the financial burden of purchasing a franchise but it does place the individuals purchasing the franchise together in a potentially dangerous situation. You are involving yourself in sharing the experience of purchasing a franchise with someone you do not know. While you may being completely honest on your profile and may be a career-driven person who is devoted to working hard to build up a franchise location you can never be 100% sure that the person you are partnering to buy the franchise with has the same intentions or the same drive as you do. It is also important to remember that even after you speak with and get to know the person you are considering partnering with to buy a franchise it does not mean that things after the franchise purchase will be smooth. There is always a high potential for partnership disputes between the two franchisees which can become costly when it comes to the finances of the franchise and the way the franchise operates.
Buying a franchise with another person is something that should be considered only with someone you can trust to fulfill their obligations financially and as an entrepreneur. Prior to buying a franchise with a partner it is important to discuss with your franchise lawyer how to protect yourself before buying the franchise should a partnership dispute should arise.
1. ORDER a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise";
2. ORDER a complimentary copy of "7 Steps to Buying a Franchise";
3. CONTACT The Internicola Law Firm‚ P.C. by phone at 1-800-976-4904 or by email to learn more about our franchise review and partnership agreement services.
Category: Buy a Franchise
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.
An attorney client relationship is not established by submitting this initial contact information.