Franchise Agreements have been a core heart of a business over the years in New Zealand and with the evolving time, the owners of the businesses are more inclined to have their franchises at different locations rather than running it at their own. Also, it is beneficial for both the parties in several other ways. For this purpose, Franchise Agreements are signed between the buyer (franchisee) and seller (franchisor).
Why should I Franchise my Business?
It becomes an extremely costly exercise to open outlets at several locations and hence the same becomes costly too. However, by way of a franchise arrangement, not just it becomes cost effective and you get an opportunity to expand your business using someone else’s capital, it would also get you relieved of the cumbersome exercise which you would be required to do in case of operating your business solely by yourself.
Another advantage of such arrangement could be that you would find talented people for smooth running of your business. This would also help in expansion of business as you can open more units and more units means more and more marketing and advertisement which would ultimately enhance the sales of your business.
Why should I Buy a Franchised Business?
The business strategies and priorities naturally differ from person to person, however, it is always advisable to step into a franchised business and own a franchise rather than starting up your own business.
Since the startup of a business not just requires a capital, along with that, it requires various strategies of marketing, establishing the reputation of your business, getting the Intellectual Property registration done and so on. On the contrary, if you opt to purchase a franchised business, the major advantage is that you are using the brand name which is already well reputed, you would be using the Standard Operating Procedures for running the franchise which have already been proven to succeed, you would be getting trainings which will guide you to successful operation of your business, you would be supported by the franchisor who has been in the market for quite some time and would know of the ins and outs of the industry practices, etc.
Why do I Need a Lawyer For Signing off the Franchise Agreement?
You MUST consult with the lawyer for Franchise Agreement as such Agreements are often very lengthy and contain several terms and conditions which are necessary to be explained to you by a professional before entering into such kind of an arrangement. Such terms impose a number of obligations which you are required to understand that whether it would be practically possible for you to honor that or not.
Having said that, Fortune Manning has a team of lawyers who specializes in this arena and can better assist you regarding all the aspects of the Franchise Agreement including the terms and conditions, the obligations on your part and also the risks involved, if any.
