For many people who want to start a first business, knowing where to go and what to do to get a business off the ground is overwhelming. For these people, or even for seasoned business owners, buying a franchise is an ideal way to own a business but have all the advantages of a built-in support system as well as a recognized brand.
When purchasing a Minnesota franchise, there are many factors to keep in mind. As someone who may not have a lot of experience in owning and managing a business, navigating the contracts and negotiating for specific services or aspects of ownership can be missed in the process. Hiring a franchise attorney to ensure you are protected and you have all the necessary information to make an informed decision is critical.
Ideally, do your research on the franchises of interest. This is a lengthy process if you do your due diligence. Find out as much as you can about the franchise and also interview at least 10 current or past franchise owners in Minnesota or in neighboring states. Once you have found a franchise that has a solid reputation with past and current owners and you are ready to take the next step, hiring a franchise attorney is essential.
Getting the Necessary Information
The franchisor (the owner of the franchise) has to provide a Franchise Disclosure Document that is a breakdown of the franchisor and all regulations and obligations you will have as a franchise owner.
Your franchise attorney will review this document, which can be several hundred pages, and ensure you understand all of the fine print and regulations. He or she will also ensure you understand any parts of the document that may be possible deal breakers based on the advice of your attorney.
By having your specialized attorney involved early in the review process, there will be no surprises once you become an owner. By having this information explained and clarified, you can also avoid wasting time on pursuing a franchise that won’t work for your business needs.