Common Pitfalls When Buying a Franchise in Florida

Most people are aware that starting a business is hard work, but business owners can tell you that there are many rewards to doing so. However, starting a business does not always mean you have to reinvent the wheel. For some business owners, becoming a franchisee is the way to go. A franchisee is a person who has purchased a franchise, which is a business that is independently owned and operated with permission to exist under another patented process or trademarked name. Unfortunately, many people who decide to pursue a franchise in Florida underestimate how complex the franchise process can be. An experienced attorney can help you throughout the franchise process, and can assist you with understanding what the common pitfalls are that franchise owners face and how you can avoid them.

Common Pitfalls

The Wall Street Journal notes that some franchise agreements are specifically designed to put the franchisee in a weaker position than the company offering the franchise. This is one reason why it is extremely important to work with a Florida attorney who has experience with franchises. Doing so can help you negotiate a more level playing field in situations in which such negotiations are an option, or help you avoid franchise options that otherwise do not meet your needs. It is fairly easy for individuals to overlook certain clauses or to misinterpret how they work in connection with the rest of the contract, and an attorney can help you avoid these mistakes.

Forbes reminds potential franchisees that some franchise agreements also contain pitfalls, such as hidden fees. These fees can often be above and beyond the franchise fee, and being hit with these hidden fees can negatively impact your business plan as well as the potential success of your franchise. Having an attorney carefully review franchise disclosure documents can help you prepare for such fees and potentially avoid them, depending on the circumstances. Your attorney can also help you understand clauses in the contract such as non-compete restrictions that could inhibit your ability to leave the franchise and conduct other business.

One of the most important parts of selecting a franchise is doing your research. The Wall Street Journal also notes that some franchisees have more freedom to run their business as they see fit than others, and the level of autonomy related to your franchise is an important consideration. Conducting thorough research into the various aspects of a franchise can help you narrow down the list of the ones that might be right for you. Another reason this research is important is because it will help you learn more about the processes associated with starting a franchise, including training and hiring employees. Extensive research can also help you identify and understand concerns such as oversaturation of the franchise and/or service or product it provides in a particular market. It can even help you identify realistic expectations for income and other aspects related to your franchise that can help inform your decision when entering a franchise agreement.

Legal Assistance with Your Florida Franchise

When you put forth the time, money, and energy required to create a successful business plan, it is important to take steps to protect your investment every step of the way. That often begins by working with an experienced legal team that understands the needs of business owners, including those looking to purchase a franchise or expand their existing franchise agreements. Contact the legal team at Jurado and Farshchian at 305-921-0440 or email us at [email protected] to schedule a consultation and find out how we can put our experience helping Florida business owners to work for you.

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