Franchising Considerations in a Tough Economy

For an eager entrepreneur looking to fly headlong into the world of business ownership, there are few opportunities that are as appealing and packed with potential as a franchise.

Purchasing a franchisee license from an established and well-known franchisor can help one to exploit existing public goodwill toward a company’s goods and services. It can also save you countless dollars in advertising campaigns by eliminating the need to cultivate a brand image and persuade customers to try a new and untested enterprise. But it is important to consider the decision to become a franchisee very carefully.

If you are currently thinking about pursuing a franchise license, consulting with an experienced and skilled attorney might prevent you from entering into a potentially problematic or unfavorable agreement. Contact the Minneapolis business lawyers of Skjold ▪ Barthel, P.A. at 612-746-2560.

Look Before You Leap

As with any contract, it is important to carefully review the terms before putting your signature on the dotted line. Even though there is little incentive for a large company to bury particularly unfair provisions, there may be some elements of a contract that are problematic for your own aims and circumstances. For example, there may be a stipulation about hours of operation that conflict with your intentions. Some important food for thought in a tough economy:

• Is the franchise or field resistant to downward pressures? Luxuries tend to be the first thing to go when consumer wallets are pinched.
• Where possible, lean toward a franchise opportunity that is closely related to your knowledge and experience.
• How quickly will you be able to recoup the licensing fees and costs if business is slow?

Contact Us

For all of your franchising questions, contact the Minneapolis business lawyers of Skjold ▪ Barthel, P.A. at 612-746-2560.