Franchise Q&A David Glover
Franchise recruitment manager at Caremark
Q: Is franchising open to all ages?
A: Age is not a barrier to buying a franchise, so it does not matter whether you are in your 20s, 30s or your late 50s. What is crucial is that you have the passion for the sector you wish to work in; without that, no matter what age you are, your business will never get started. There are pros and cons for being a younger franchisee versus a mature franchisee; while youth brings an abundance of energy and excitement for the future, more years under the belt often bring a depth of experience and wisdom, gleaned from climbing the ladder of life and career. Regardless of age, each franchisee will have their own unique skills and it is these that are important, plus the drive to build a successful business.
More importantly, franchisees need to have ‘stickability’ and be determined to work hard and push on through the tough times. Owning and running your own business is not a passport for overnight success and riches – neither does it mean you will not encounter challenges. What will defi ne you is how you approach and resolve these challenges. However, being your own boss and reaping the rewards of hard work is often what brings people into franchising and that goes for professionals of all ages.
So, when you are ready to take that step into franchising, what year you were born is not important – you are as young as you feel and if you are doing what feels right for you, then your age is just a number.
Jane Masih
Head of franchising at Owen White Solicitors
Q: Do I need to seek legal advice before investing in a franchise?
A: One way to answer to this question is to consider what will happen if you don’t take advice. Everything may turn out exactly as the brochure described, but, if it doesn’t, life can become complicated and expensive. The franchise agreement is usually a long document containing many obligations and restrictions that will apply not only to the franchisee, but also to the principal directors and shareholders. The personal guarantee that the majority of franchise agreements contain often comes as a surprise to prospective investors. The benefi t of obtaining legal advice
before committing to the investment is that the parties enter the agreement understanding the scope of the legal obligations and the restrictions that will
apply not only to the franchisee, but to the owners of the franchise company, both during the term of the franchise licence and for a period of often up to 12 months after the franchise agreement has come to an end. To enter such an agreement without obtaining professional advice about the implications is at best blindly optimistic. It is often the case that franchisees who decide to ignore recommendations to take legal advice have a rude awakening when the business does not proceed as they had hoped. To discover at that point the extent of the binding legal obligations and restrictions dictating what can and can’t be done is a compelling reason why taking advice from an adviser who is experienced in reviewing franchise agreements is money and time well spent.
July/August 2017 |
BusinessFranchise.com | 29
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