20th Anniversary SAC Attorneys
Elite Lawyers
Lawyers of Distinction
Avvo Rating 10.0
Santa Clara County Bar Association
Association of American Trial Lawyers
Elite Lawyers Business James Cai 2017
Best Litigation Attorneys in San Jose
Expertise - Best Employment Lawyers in Santa Clara 2021
Expertise - Best Employment Lawyers in Santa Clara 2022

Mistakes to Avoid as a Franchisee

June 16, 2022

Starting a franchise can be an exciting thing. Becoming a franchisee can result in great success. However, it is vital to remember that a franchise can be just as risky as any other type of business. You need to be careful not to make some mistakes when starting a franchise. Your business could fail if you make the wrong decision when starting or soon after starting.

The following are six mistakes to avoid as a franchisee. Avoid these mistakes at all costs and increase the chances of your franchise succeeding.

Not Exploring Your Options

It is crucial that you consider all your options when looking at franchise opportunities. For example, do not just look at the large, well-known brands. It is possible for a smaller business opportunity to have a strong financial performance, so do not ignore smaller businesses. Also, when looking at franchise opportunities, remember that the franchise industry consists of more than just restaurants and retailers.

Not Conducting Enough Research When Choosing a Franchise

Maybe it is a business's mission and values that you find attractive. Or, perhaps you love the products the company sells. Do not buy into a franchise because of such things. There is a lot you should consider before making your final decision. Ensure you conduct thorough research before settling on a franchise.

To find out about a franchise, you can approach existing franchisees. People who are already in business can provide you with information about, among other things, the effectiveness of the franchisor’s training, support, and systems.

Failing to Review the Franchise Disclosure Document (FDD) and Franchise Agreement

The franchise agreement and disclosure document contain information that can help you as a prospective franchisee make a well-informed decision. Therefore, ensure you review the FDD and franchise agreement thoroughly. For example, in the disclosure document, you can find information about the franchisor's business experience and prior civil, criminal, or insolvency proceedings. In the franchise agreement, you can find the guidelines you are expected to follow in operating your business.

Not Hiring a Lawyer

Joining a franchise program is not something you should do without the help of a professional, especially if you have never been a business owner. A lawyer can help you with many things. For example, they can help you fill out legal documents and understand legal documents. For example, a qualified lawyer can help you understand a Franchise Disclosure Document.

Not Utilizing the Franchisor’s Support

After settling on a franchise, you need to utilize the franchisor's support. Remember, the franchisor has experience and knowledge that you might not have. Take advantage of this.

Straying From Your Business Plan

You need a business plan even if you are buying into a franchise with existing procedures and systems. But having a business plan is not enough. You need to stick to your business plan and avoid straying from it without a sound reason. Before you make changes, it is best that you conduct thorough research. Do not assume things.

Contact a Business Attorney Serving Santa Clara County and Silicon Valley

If you are looking to buy into a franchisee and would like to hire an attorney, contact the experienced business attorneys at SAC Attorneys LLP.

Client Reviews
★★★★★
Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.
★★★★★
I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to SAC Attorneys LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by SAC Attorneys LLP attorneys. A job well done! X. Gao
★★★★★
They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose SAC Attorneys LLP as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at SAC Attorneys LLP not only as our legal advisors but also our venture partners. Dr. Pete S.