Becoming a franchisee is a big decision that should not be taken lightly. One of the best ways to avoid future franchise law issues is by taking the right first steps when identifying, researching and choosing a franchise opportunity. These steps are important for all franchisees in Ontario, whether they are new to the business or they are familiar with the franchise system.
Businesses go through strong vetting processes with potential franchisees. Typically, they appreciate seeing that some research has been done in advance of conversations. Research not only will impress the franchisor but will also help the potential buyer understand in-depth if this opportunity makes sense for them. Coming to the table with documentation, proof of qualifications and notes taken during the research phase will support these important conversations.
It is a good idea for a potential franchisee to consider the questions that they wish to ask before this conversation. Writing them all down is a good way to ensure nothing is missed after the fact. Along with research, it is helpful to talk to friends, colleagues and franchise law experts to gather potential questions worth asking.
Staying professional and appearing prepared is important for every meeting with a franchisor. They are looking to see whether the potential franchisee is a good fit for their business and if the individual can properly represent the brand. Along with being well-spoken and appearing professional, learning as much as possible about franchise law and how franchise agreements work through meeting with an Ontario lawyer is a good idea at every step in this process.
If you have questions about franchise law, contact our Business Law Group.
Source: betheboss.ca, “The Franchisee Evaluation: Are You Up to the Scrutiny?“, March 19, 2018