| Buying a franchise may be attractive, but there are | | | | in the actual day to day management of this type of |
| many aspects to this business model that you should | | | | business. You will be required to run your business with |
| investigate before you invest your hard earned cash in | | | | someone else's system which could be in opposition |
| a franchise. First of all, you should understand the | | | | for your motivation in owning a home based business |
| definition of a franchise. A franchise is defined as an | | | | as you were trying to get away from someone else's |
| agreement in which one business grants another | | | | rules. You will find that the franchisor is still the boss |
| business the right to sell its products or services. | | | | and if you don't follow the rules, you might find yourself |
| There are many state and federal laws and | | | | in violation of your franchise agreement. |
| regulations that you will face if you buy a | | | | To protect yourself before you agree to a franchise |
| franchise..The Federal Trade Commision[FTC] has a | | | | agreement, look for a few pitfalls to avoid . If the |
| large code of regualtions that is known as the | | | | franchise is younger than five years old, do a little |
| franchise rule. A section of this rule requires the | | | | more home work. If there are claims that you can |
| franchisor to provide a disclosure statement to the | | | | make a lot of money with a little bit of work, you |
| potential franchisee. This statement is called a uniform | | | | should be suspicious. If you are told by the franchisor |
| franchise offering circular[UFOC]. | | | | that you don't need an attorney to look at the |
| The UFOC includes the name of the franchisor, a | | | | agreement, you will be sorry that you didn't hire an |
| description of the business, business experience of the | | | | attorney. Or, yet, if you are told by the franchisor that |
| franchisor. financial statement of the franchisor, the | | | | you don't need a copy of or don't need to read the |
| franchise fee along with future fees, litigation history of | | | | franchise agreement, walking away will save you a big |
| the franchisor, restrictions of how the business will be | | | | financial headache. |
| run which includes the products and services that will | | | | Overall, most franchises are successful as they have |
| need to be purchased. | | | | a proven track record and usually have a quick cash |
| The legal arrangement or franchise agreement defines | | | | flow. As long as you obey the franchise rules, you will |
| the rights of the franchisor and the franchisee. The | | | | be successful. |
| franchise agreement includes how the use of the | | | | Word verification for the day: Why do we say "Davy |
| franchisor's trademark can be used, the length of time | | | | Jones' Locker"? |
| of the agreement. renewal agreements, advertising, | | | | Jonah, the profit of the Bible, was thrown into the |
| payments of the purchase of the franchise and | | | | sea."Jones" is a varient of Jonah. Davy is a corruption |
| renewal fees and what supplies can be purchased | | | | of the West Indian Negro's name for a "ghost' or |
| from the franchisor. This agreement also includes the | | | | "spirit". So the phrase means the locker of the spirit of |
| legal requirement of the termination of the agreement. | | | | Jonah. The locker is of course at the bottom of the |
| Besides the legal agreements involved in buying a | | | | sea. |
| franchise, you might consider some of the restrictions | | | | |