A franchisor is a company that sells the rights to manage a unit of its business. The buyer of the business unit is known as the commercial franchisee and must comply with the business model established by the franchisor.
Together with the rights to establish a new commercial office, the franchisor provides the franchisee with unique brands, products and / or services and commercial assistance to bring the franchise headquarters to the standard level and promote success.
If you plan to start a franchise in your area and have questions about the relationship between a franchisor and an affiliate, you can get professional advice from a local lawyer.
What assistance does a franchisor provide,
In a franchisor / franchisee relationship, a franchisor will provide things like:
– Financing – This is not typical of all franchisors, but many will provide financial assistance to take off a franchise. If possible, a payment plan can be established within the terms of the franchise agreement.
– Selecting your location – Some franchisors will help you choose a location for your franchise. Other franchisees will select the position for their affiliates. You can benefit from the selection of the franchisor, as they know which locations will have the best chance of success. Remember, the success of a position is as important to the franchisor as it is to the franchisee.
– A manual for training and operations – You will need to know what steps to take and what rules you will need to follow to manage operations and comply with the guidelines set by the franchisor. The training and operation manual will establish these specifications. It will tell you the business processes and operations, the performance and management standards and your role, as well as the roles of your employees in managing the company franchise.
– Advertising – Generally, the franchisor will manage the marketing activities and will require the franchisee to pay in a fund for these activities. This may include television commercials, print ads, radio ads and Internet campaigns in addition to PR support.
– Corporate Support – Most franchisors provide commercial support to their affiliates. This includes assistance for general operations, including employee problems, insurance requirements, accounting, and so on.
Contact a corporate lawyer
To get professional help with starting the franchise, you can contact a corporate lawyer. A business attorney can help you:
– Interpret the legal documents involved with the start of a new franchise;
– Review of contracts;
– Respect the company rules and guidelines; is
– Resolve disputes with the franchisor.
If you are a franchisor or an entrepreneur who is interested in becoming a franchisee, a business lawyer can help you overcome the legal obstacles of starting a franchise in your state.