Franchising is one of the best ways that a business owner can expand their business. It is also a great undertaking for investors or business owners who want to tap into an already established brand. Buying a franchise would be the better option if you have a specific product which you want to work with. However, for the successful business owners who are looking to expand their business, franchising is also a great way to grow, build a presence in the market and increase revenue. There are a few factors and rules that you need to be aware of as you seek to use this option.
If you are looking to expand your business through franchising you need to:
Compliance with the Code of Conduct for managing franchises is a must for all who are looking to go down this path. It’s a legal requirement which has to be adhered to and seeks to protect the interests of all parties concerned. The Code sets out each parties rights and obligations and also sets a standard for the creation of a franchising agreement. The code also provides a solution to dispute mediation.
The franchise agreement is a legal document that will be used to govern the rights and obligations between franchisees. It has to be reviewed by a solicitor. When the new business is your idea, ensure that your idea is well protected by the franchise agreement under Intellectual Property legislation. The agreement also needs to adhere to the Occupational Health and Safety Obligations regulations. Tax obligations and any fees which affect taxation must be well understood as well. These are some of important aspects of franchising your business that you need to be familiar with when expanding your business.
If you are looking to expand your business, you should take the time to consider franchising and how it can help you grow. The venture can offer you many great opportunities and extensive benefits. The fact that it adds to your revenue stream while not requiring your day to day management or presence makes it even more attractive as a business expansion tool. Franchising increases the network of distributors for your goods and services thus ensuring that there is proper supply to your clients and interaction with clients throughout the country and beyond.
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