subject: Become A Franchisor To Make An Existing Business More Profitable [print this page] Is it possible to increase the size of a business even with the minimum investment? Yes, it can be done, by allowing the business to be run by a franchisee. The franchisee is a person or a company who runs a particular aspect of a business, which is owned by a franchisor. Detailed terms and conditions can be explained by a franchise lawyer, who is capable of preparing an extensive franchise disclosure document for the benefit of both parties.
There are many attorneys who prepare franchise documents and explain the various clauses under the same. Many Federal and state regulations also need to be followed, to make sure that legal requirements are completed. However, care must be taken to hire an experienced franchise lawyer, so that problems are not faced at a later stage, once the franchising procedure is complete.
It is easier to buy a franchise rather than starting a new business, as the expenses involved are much lesser. Business procedures are already established by the franchisors, so there are no additional expenses involved in the set up. If the franchisor is international,it is more beneficial for the franchisees, since value of the international currency is much higher than local currency.
The process of buying an existing franchise is often a safer and faster way to acquire more money, since many policies and procedures would already be in place. There is no need to purchase infrastructure, which has already been established by the franchisor. In return, by way of franchise laws, the franchisor gets a share of the profits, and gets to enhance the name of his brand.
Instead of looking for a new territory to set up business, it is usually better to acquire a new franchise. The franchisor may want to sell his business for a variety of reasons: he may be looking to move to a new location, he may not have the necessary money to operate the business any more, or his business must be losing out on the current competition.
As has been mentioned earlier, the person who has a business and wants to give the whole or a part of it, can become a franchisor. It is important for the buyer to check the financial statements of the existing franchise before taking it over, to understands the exact current position.. The employees are already in place and trained, and there is usually no need for a ramp-up period before the business is profitable.
