What You Need to Find out About Buying a Food or Fresh Juice Franchise

Andrew Lu’s article for FindLaw.com discusses several important things every aspiring franchisee needs to keep in mind. Among other things, interested parties need to take note of all the legalities involved to avoid problems down the road. He also stresses the importance of doing proper market research beforehand.

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Study the Market. Is your area ready for another franchise of the same name? Are there lots of competitors nearby? Do your homework and due diligence by surveying the area where you want to open the franchise. You may also want to ask the franchisor if they will sell more franchises near you.

Read the Franchise Contract Carefully. The franchise contract sets out all the terms and obligations of your franchise relationship. Some contracts can be very strict and limit everything from the types of napkins you use to the number of pickles that go in a bun. Other contracts provide more leeway and really only license the name of the company.

Choosing a franchise opportunity is much like deciding what type of business to start and develop; you will need to conduct a feasibility study; comply with federal, state, and local regulations; and form a team. The main difference with running a franchise is that you’ve already got a sizeable customer base to start with. The challenge mainly lies in being able to meet the franchise owner’s standards and established guidelines, as well as identifying which products are likely to enjoy high demand in your area. Juice franchise opportunities, for instance, are worth considering in zones frequented by health buffs.

Franchisors and franchisees will come to a commonly strict agreement geared toward maintaining brand reputation. The franchisor will normally require the franchisee to use the same logo, production and distribution methods, and even uniforms if applicable. To ensure a successful smoothies business, for instance, companies such as Fresh & Healthy Brands make it easy for franchise partners to keep up with brand image and standards by providing the necessary training.

Knowing all the requirements for buying and running a franchise beforehand will help you overcome all potential issues that might impede your cash flow. Such knowledge is just as important as choosing the right company to buy a franchise from.

(Article Excerpt and Image from 5 Legal Considerations for Buying a Franchise, FindLaw.com)

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