When you purchase a franchise, you are actually paying for the product or service’s proven business track record and the franchisor’s marketing, training, and business support. This explains why putting up a franchise busines generally costs more than putting up a start-up. Despite the added expense, many still consider franchising because of its overall higher success rate vs. non-franchised businesses. Before you sign any franchising agreements, consider consulting with a Canadian Franchise Lawyer, who is an expert in the field and will be able to dispense invaluable legal advise relating to all aspects of the franchising business.

A franchise is a legal agreement whereby a franchisor grants a franchisee the rights to distribute goods or services developed by the franchisor in a particular way, a specific location, and a specified period of time. Buying a franchise does not mean you own the franchise business itself. What you actually own is just the rights to operate business under the specifications of the franchise agreement.

There are several advantages to buying a franchise. As mentioned earlier, the franchisor will provide you with training and business support to help you manage the franchise. This training will be provided as necessary throughout the course of the business, as long as the franchise agreement is still in effect. Aside from training, the franchisor will also regularly supervise business operations and will be available for advice. Another benefit is collective advertising. Most franchisors can afford to fund regional and national ad campaigns, and your franchise will surely benefit from this. Hiring Franchise Attorneys will ensure that your rights as a franchisee are protected when the franchise agreement is drafted; he or she can also ensure that the terms of the agreement are upheld.

On the other hand, franchising also has a few disadvantages. One of them is the fees and the costs involved. Most franchises are expensive to purchase and involve paying ongoing fees or royalties based on sales. Other disadvantages of franchising include limited possibilites for expansion, and restrictive guidelines and regulations which can confine the business decisions you can make as the franchisee. Your  Franchise Attorney can help explain your rights as a franchisee, as well as help you understand any legal restrictions laid out in the franchise agreement.

Before you decide to sign that franchise agreement, do your research and study the pros and cons thoroughly. As with putting up any kind of business, there are several risks involved. Know that franchising is not an entirely risk-free investment. Although in comparison, more independent businesses are prone to fail, one study published in the Wall Street Journal showed a 35% failure rate among franchises.