Business

3 Things To Consider Before Signing Your Franchise Agreement

Franchises offer a balance between the freedom of starting your own business and the stability of an established brand. Unlike starting a business from scratch, purchasing a franchise offers access to resources, capital, brand identity, and other extremely helpful assets that can help your business thrive. However, there are a few things you should consider before signing your franchise agreement and opening your new franchise:

How much will it cost?

Starting a business can be extremely expensive, which is why franchising can be such an attractive opportunity. While the costs are still substantial, you may be able to get funding from the franchisor or use the brand’s reputation to help obtain a loan from a bank. Before signing your franchise agreement, make sure to consider exactly how much it’s going to cost and how you’re going to finance this new venture.

Is it right for you?

Franchising exists in a number of industries, not just fast food. As a potential business owner, determine whether your skill set and passion align with the needs and goals of the franchise. While it’s possible to run a successful franchise with no prior experience, being passionate or knowledgeable about the industry before signing your franchise agreement can be extremely helpful.

How much time can you invest?

Opening a franchise is just like opening your own business. It requires a lot of time and commitment to ensure everything runs smoothly. If you are already employed or have other commitments, consider if you’ll have enough time to dedicate to opening your new franchise.

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3 Red Flags to Watch Out For When Buying a Franchise

Franchising is a great way to run your own business with a fraction of the risk of starting from scratch. You’ll have access to an existing brand and consumer base, an established supply chain, and more. However, there are times where opening a new franchise is not a good idea. However, if the franchise is consistently losing sales, taking advantage of franchisees, or there are any other noticeable issues, you may want to proceed with caution and consult a franchise lawyer before jumping in. Here are a few red flags to watch out for:

Supplier and Vendors

Some franchises require franchisees to purchase supplies from a single source. While this may be the most efficient and convenient option in some cases, it may also be a red flag. Mandatory suppliers may drive prices up and quality down, which could prevent your new business from reaching its full potential. Consult a franchise lawyer to get an expert opinion on the matter before making a final decision.

How Many Years in Business

Consider how long the franchise has been in business. While it’s possible for newer franchises to succeed, the possibility is much higher for brands that have already been around for decades. Speak with a franchise lawyer to find out what they think about your potential purchase.

Geographic Area

Does the franchise currently have experience in the area you are planning on opening your franchise? For example, the brand may be popular on the west coast, but may not work out on the east coast due to increased competition or other established options that could limit your growth.

Franchise lawyer with franchisee business contract

When Should You Hire a Franchise Lawyer?

Franchises can be an extremely effective way to grow an existing operation. Regardless of the industry, franchising offers a number of benefits to both franchisee and franchisor. Whether it’s an efficient supply chain, established brand identity, or a network of meaningful connections, franchises provide the opportunity to start a new business with a fraction of the risk.

While franchise agreements generally cover important terms and provisions that dictate the relationship between franchisee and franchisor, there are still a handful of issues that may arise. Whether you’re the franchisee or franchisor, franchise lawyers can help make your business relationship both effective and fair, even in the face of controversy. Here’s when you should consider hiring a franchise lawyer:

Before signing your franchise agreement

Franchise agreements provide a framework for how a new franchise will operate, complete with payment details, confidentiality agreements, and more. They are an essential part of any successful franchise, making it important that you understand the terms before you sign. A franchise lawyer can help you decipher the legal jargon to ensure that you understand what you’re getting yourself into.

When there’s a business dispute

If there’s ever an issue between franchisee and franchisor, it’s not advised to try to handle it on your own. Franchise lawyers can help mediate and smooth out any disputes so that all parties are satisfied with the resolution. Regardless of the nature of your dispute, you should consider calling a franchise lawyer before jumping to any conclusions.

Franchise lawyer on retainer

As a franchisee or franchisor, it never hurts to have a franchise lawyer on retainer. Doing so can help you run your business within all legal boundaries to ensure you don’t get yourself into any trouble. Experienced franchise lawyers can also help you streamline your operation, providing a greater potential for growth.

If you’re looking for an expert team of professional lawyers, contact Law Works. They’re one of Canada’s select few boutique law firms with expertise in franchise and business disputes. Law Works represents international and Canadian franchisors, master franchisees, multi-unit franchisees and local single-unit franchisees.

Franchise lawyers discussing business in Waterloo.

3 Benefits to Hiring a Franchise Lawyer

Opening a new franchise can be an exciting opportunity for all parties involved. Whether you’re a first-time franchisee owner or a seasoned franchisor opening your 50th location, there’s a lot to know about franchise law.

From disclosure documents to conflicts of interest, navigating your franchise agreement can be a tricky task without the right expertise. Fortunately, franchise lawyers can help lay the groundwork for a prosperous relationship. Here are a few ways that lawyers can streamline the process to make it easier for everyone involved:

How to structure a franchise system

The way a franchise is structured plays a huge role in the way it operates. If you’re unfamiliar with business agreements, corporate lawyers can help you determine the best structure for your needs. They can help you decide whether a single unit, multiple units, or master franchise is best, along with the ideal type of corporation.

The laws that govern franchising

Franchise contracts are a tricky subject with lots of legal jargon that can be difficult to interpret without the right knowledge. Franchise lawyers can clarify and detail the laws that govern franchising so that you can better understand the relationship you are entering into. They can inform you about any legal boundaries and guidelines to help you streamline your operation.

How to help franchisees secure financing

Opening a franchise can be an expensive investment. While there are all sorts of banks and other lenders that can help you finance your new endeavour, the difficulty is in choosing the right one. Franchise lawyers can help you get the best rates and terms to finance your business as efficiently as possible.

Franchise Agreement signed in Waterloo

Four Types of Franchise Agreements

Opening a new franchise is an exciting opportunity, but it can also be a bit overwhelming if you don’t have a lot of experience. Whether you’re opening a single store or a new chain, your franchise agreement helps determine the guidelines for the relationship between franchisee and franchisor.

A franchise lawyer can help you understand your franchise agreement, but it’s important to understand what type of agreement you are entering into so that you can choose the right lawyer for the job. If you are considering opening a new franchise, here are the four types of franchise agreements that you may come across:

Single Unit Franchises

Single unit franchise agreements are the most simple and common form of agreement, and the name pretty much says it all. These agreements allow a franchisee to open a single franchise location, and they are a great way to learn about the franchise system before considering additional units.

Multi-Unit Franchises

Multi-unit franchise agreements grant the franchisee permission to open multiple units. They outline the number of units the franchisee is allowed to open over a specific period of time. If franchisee owners have multiple units, there’s a good chance that the franchise organization is stable and doing well.

Area Development Franchises

Area development franchise agreements are similar to multi-unit agreements in that they allow the franchisees to open a specified number of units. The only difference is that this type of agreement limits development to a specific area.

Master Franchise Agreements

Finally, master franchise agreements are just like area development and multi-unit agreements, but with a bit more authority. These agreements allow franchisees to open a specified number of units in a given area, but also give them the power to sell units and usually receives royalties from franchisees.

Before signing a contract agreement, make sure you talk to a professional franchise lawyer. Contact Law Works in Waterloo for expert business and legal advice on all types of franchise agreements.

Franchise Lawyers in Guelph

What Do Franchise Lawyers Do?

Opening a franchise is a great way to gain experience as a business owner, and it comes with less risk than opening your own business. However, there is a lot that goes into opening a franchise, making it important to hire a franchise lawyer, especially if this is your first time. Opening a franchise can be expensive so you might be wary about the cost of a lawyer, and whether or not it is worth it. However, franchise lawyers are essential for any franchisee owner.  Here is what they can do for you:

Review & Advise

Opening a franchise requires a lot of paperwork, contracts, and legal jargon. If you are planning on opening a franchise, it can be a lot of information to digest, especially without the help of a franchise lawyer. Your lawyer will be able to review all documents and contracts, providing you with a better understanding of the relationship you are entering into.

Negotiate Contracts

As we mentioned above, franchising involves a lot of contracts and legal documents that influence the relationship between franchisee and franchisor. A franchise lawyer can help negotiate the terms and contracts so that the agreement is fair and beneficial to both parties involved.

Help with Business Operations

A franchise lawyer can help you determine the best way to operate your franchise once it’s up and running. From legal guidelines to suppliers, they have experience on both sides of the relationship. They can help you determine the most effective and profitable ways to run your business while ensuring that your operation isn’t violating any laws or regulations.

If you’re interested in purchasing a franchise, get the help you deserve. Contact Law Works in Guelph, they can help you solve disputes easily with a team of professional franchise lawyers.  

How Franchise Lawyers Can Help with Franchise Agreements

Opening a franchise can be a fulfilling and exciting opportunity if you play your cards right. Often times, new franchise owners come across a lot of legal jargon and uncertainty in franchise agreements, which can be intimidating or even a bit overwhelming. Your franchise agreement dictates the relationship between franchisee and franchisor, so it’s important to make sure both parties are treated fairly. It never hurts to get some outside help if you are considering a franchise agreement, here are a few reasons why:

They can offer advice on how to choose a business entity

Should your business be a Limited Liability Corporation (LLC)? Maybe it should be a Subchapter S? Or perhaps you should file for a C-Corporation? If you don’t know the difference, you can set yourself up for future complications. It is paramount to choose the right business entity for your new franchise. It determines your legal rights and liabilities as a business owner, and also influences how your business is taxed. A franchise lawyer can offer useful suggestions on how to set up your your new franchise business.

They can help with legal compliance

Franchise lawyers possess relevant knowledge to ensure your franchise agreement complies with local, national, and international law. Whether it’s a small municipal law or a major legal principal, franchise lawyers can help you navigate your franchise agreement to ensure its fair for both parties.

Franchise lawyers keep things simple

Franchising, especially franchise agreements, can be complicated. Experienced franchise lawyers can help you cut through complications by explaining how certain terms or documentation work together, clarify legal boundaries, and negotiate a desirable agreement between franchisee and franchisor. Contact Law Works, Canada’s leading business law firm for professional franchising help. 

franchise business lawyer Ontario.

What To Look For When hiring a Franchise Lawyer

Franchise lawyers can make or break a franchise, since they can influence your franchise agreement and how your business operates. From clarifying legal jargon to helping you navigate legal boundaries or disputes, franchise lawyers are essential for both franchisee and franchisor. With so many lawyers around, it can be tough to find one that works for your situation. To give you a head start, here are three important factors to consider when hiring a franchise lawyer:

Franchisor vs. Franchisee Experience

Most good franchise lawyers have experience on the franchisor side of the equation, so it’s ideal to find someone who meets this criteria even if you are a franchisee. If your franchise lawyer does the majority of their work for franchisees, their approach might be skewed towards the franchisee. Either way, you should ask whether or not they draft franchise disclosure documents (FDDs), because if not, they’re likely unqualified.

Flat Fee vs. Hourly

Many franchise lawyers will work on a flat-fee basis, since they have enough experience to know how long the process takes. Flat rate franchise lawyers can be beneficial since the overall cost is predictable, often allowing for financing over a few months. However, they do have a downside; in some rare cases, it might be more expensive than if you were to pay an hourly rate.

Industry & Business Knowledge

While industry specific knowledge is not always necessary, in some cases the knowledge of relevant regulations can be very helpful. There are some cases/industries where industry specific knowledge is vital; medical franchising, health-care franchising, and dental franchising are a few of many. Try to ensure your franchise lawyer has experience in the industry you are getting into. If you’re looking for professional expertise in the franchise business, contact Law Works for a free consultation. 

4 ways to improve your direct mail.

4 Ways to Improve Your Direct Mail

Many marketers dismiss direct mail as an old-fashioned or obsolete method of getting your company’s message in front of the right audience. This idea could not be further from the truth. Over $45 billion was spent on direct marketing in 2016 and the number continues to grow. Social media, mobile ads, and SEO are all great but when one of the biggest online companies in the world, Google, uses postal direct mail for its campaigns, it makes sense to pay attention.

Are you convinced? Get started with these 4 tips that can help you improve your direct mail marketing and get you a better response to every mailer you send.

Send it to the Right People

One of the most effective ways to improve marketing happens before any marketing takes place. A message on a direct mail piece will ever be only as effective as the list or database it is sent to them. A well-targeted list means a better response overall. Identify an ideal audience based on demographics and geographics. A great tool is DRMG’s Precision Targeter where companies can reach audiences in specific cities and target different ages, education, family structure or income.

Send Something New and Unique 

Not only should the information you share about your business and offer be unique, but sending out an creative mailer grabs more attention than a plain card. If your design looks like everyone else, your mailer won’t get the same consideration.  Think about over-sized postcards, bulky envelopes, or interesting colors and shapes.

Capture Attention Fast 

Whether your mail piece has neon yellow starbursts or a pithy slogan printed in bold lettering across the front, you need to catch the recipient’s attention. Besides unique mailers as mentioned above, use words and phrases that clearly demonstrate you deliver exactly what they want. 

Follow Up & Give Direction 

First contact with direct mail pieces may introduce the company, product, or service, but may not convince people to pick up the phone or open a web browser to learn more. To get an overall better response from a campaign, plan out a series of mailers with follow up methods that keep what you have to offer in the forefront of their minds in a positive way. For example, include a store coupon redeemable in store or a website URL where customers can sign up for a promotion.

Companies who use direct mail for their marketing efforts, effectively report a higher return on their investment than those that only use electronic means. Contact Direct Response Media Group, if you want to improve your marketing efforts with direct mail. DRMG can organize and execute creative campaigns to get your audience engaged and your business more sales.

Franchise agreement lawyer in Guelph.

Is a Franchise Business The Right Fit For You?

At one point or another, many of us have flirted with the idea of starting our own business. The complicated process can stop many dead in their tracks while they wrestle with such tough decisions; what type of business should I create? How am I going to run it? Do I need a partner? Most default to starting a brand new idea, but there is a strong argument to be made about entering a franchise agreement.

Opening a franchise is a unique way of starting a company as it allows individuals to build their own business while having the recognition of an established entity behind them. For some this is an ideal scenario, however it is essential to be well informed and patient when structuring the franchise agreement. The agreement is meant to be a mutually beneficial arrangement, therefore, you must ensure there aren’t any clauses that could lead to future conflict or disputes.

While franchises are often beneficial in most regards, the aspect of partnering with a well-known company can just as quickly deter potential franchisee suitors. That is because it can be very intimidating when it comes time to negotiate the franchise agreement. Being prepared by entrusting the negotiation process to a franchise lawyer can rid yourself of any anxiety and instill confidence that your best interests are their primary concern.

A healthy relationship is vital for success, and should benefit both parties to ensure that neither is treated unfairly. As such, a well-structured franchise agreement in the early stages will lead to future benefit by preserving this bond. If you’re interested in finding out if a franchised business is right for you, contact Law Works in Guelph to speak with a franchise lawyer today.