Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Understanding the costs important when joining a franchise

Individuals looking to operate their own business have various options for branching out into the business world. One is to join a franchise. Some might find this an attractive option as compared to trying to build a business completely from scratch. Becoming a franchisee can have many benefits, including getting to be connected to an already established brand.

When a person is considering joining a franchise, there are many things it can be important for them to have an accurate picture of. One is what costs go along with being a franchisee with the franchise they are considering. Having a clear understanding of such costs can be critical in making a well-informed decision on whether joining the franchise would match well with one’s goals.

Examples of the costs running a franchise location can involve include:

  • Initial franchise fees.
  • Royalty fees to the franchisor.
  • Contributions to an advertising fund.
  • Operational investments.

One of the things that has a big impact on what sorts of costs and fees being a franchisee involves is the specific terms of the franchise agreement with the franchisor. So, cost-related terms are among the things it can be important for a person who is thinking of becoming a franchisee to have carefully reviewed when it comes to a proposed franchise agreement. Experienced business lawyers can review franchise agreements and other key documents related to the franchise process for those looking to buy a franchise.

In addition to understanding the likely costs, another thing that can be important for a person when pursuing becoming a franchisee is taking measures towards reducing the chances of unexpected costs coming up down the line. Among the things that could lead to such expenses are legal mistakes or oversights during the process of buying a franchise. This is another reason why having the help of a skilled business lawyer can be critical for a prospective franchisee.

Source: Small Business Trends, “Your First Franchise: Secrets Revealed,” Larry Alton, Oct. 9, 2017

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.