Avoiding common franchisee mistakes is easy when you work with a skilled and experienced Florida Business Lawyer. If you are considering purchasing a franchise, then this article is for you. Read on to learn what you need to know about the most common franchisee mistakes in Florida and how you can avoid them.
Avoiding Common Franchisee Mistakes in Florida – What You Need to Know
Franchises are very popular among first-time business owners. When you become a franchisee, you automatically start running a business that has a strong brand. Unfortunately, however, making mistakes when buying and running a franchise can be astonishingly easy, which is why hiring an experienced attorney to help you from the very beginning, even before you make the decision to buy a franchise, is vital.
In Florida, the most common franchisee mistakes include:
- Rushing the due diligence process.
To buy a franchise, you need to contact the franchisor and let them know you are interested in becoming a franchisee. However, this is not the first step you need to take. Before contacting the franchisor, you must do your homework. Is buying that particular franchise the best move for you? Do you know enough about the business to answer the previous question? Rushing the due diligence process is one of the most common mistakes franchisees make and one of the biggest, as well.
If you are considering buying a particular franchise, make sure you know everything you need to know about it before signing the contract. After contacting the franchisor, they will provide a Franchise Disclosure Document (FDD), which should include exhaustive information about the business. Read every word of this document and make sure to have your attorney review it before you move forward.
- Underestimating your financial obligations.
The amount of money you need to start a franchise business in the State of Florida can be hard to determine, as usually there are hidden costs involved in the process of purchasing a franchise. If you are considering buying a franchise, although the FDD will provide some clues about the total cost, you should reach out to both current and past franchisees to get a better understanding of the financial obligations you will need to meet when you make the purchase.
- Refusing to give up control.
The benefits of running a franchise have a price: you have to give up control. Although you will have the ability to make some decisions about the way you run your business, your franchisor will make most of the important decisions for you, and you will have to agree to this in order to buy the franchise. For this reason, being a franchisee is not for everyone. If you do not think you will be able to handle running your business the way the franchisor wants you to do so, then buying a franchise is not the right move for you.
- Purchasing the wrong franchise.
Which franchise should you buy? That is the million-dollar question. If you are just starting out and do not have a lot of business experience, then you should stay away from the trendy new franchises and focus on established franchises that have had sustained success in multiple states or even countries for at least five years. Buying a franchise is a huge commitment, so make sure shiny objects do not blind you, and make a smart purchase.
- Not putting in the work.
When you buy a franchise, you automatically become the owner of a business that already has the word “success” attached to its brand, which can be a huge advantage. However, this will not make your business successful by itself. You still have to work hard. The benefits of purchasing a franchise can last two seconds if you do not put in the work.
I Can Help You Avoid Franchisee Mistakes
It is easy to make mistakes when buying and running a franchise, so before you contact any franchisor or sign any document, you should speak with an experienced Florida Business Lawyer to make sure you do not make any costly mistakes. I can be that lawyer. If you are considering buying a franchise, I can help you 1) determine whether it is the right move for you, and 2) complete the purchase smoothly and timely.