|
|
|
Forum Newbie
Group: Forum Members
Last Login: 5/12/2008 5:05:01 PM
Posts: 1,
Visits: 3
|
|
| I am a potential franchisor. I had a franchise development company out of New York contact me. They feel we have a great concept and want to franchise us. They ask for a small fee and then bring frachisees to you though their marketing program. They keep a portion of the franchise fee as payment on every new franchisee which sounds ok. However, with the scams of today, I want to investigate. Where can I call or look to find out about this company? Any suggestions. How do I find out about their track record? Thanks so much!
|
|
|
|
|
Forum Newbie
Group: Forum Members
Last Login: 3/11/2010 7:40:12 AM
Posts: 8,
Visits: 11
|
|
| One obvious strategy would be to figure out who they have helped in the past and contact those people, assuming you can trust the franchisors to be impartial. Other than that, there are numerous ways to do background checks on people using the Internet, but if you're worried about them now, that isn't a good sign. Launching a franchise is a difficult undertaking and you need to think about what happens when you've got franchisees on board. Is this other company just going to refer leads to you, take their cut and run? (Leaving you with the day-to-day support and supply-chain issues?) Or are they there to help you build the concept from day one and have the experience you need for franchise growth and operation? In any case, before signing anything with them, ensure you have a good franchise lawyer review the contracts to ensure the deal is good for you both.
Jason Kealey
LavaBlast Franchise Software - http://www.lavablast.com
Simplifying day-to-day franchise operations
|
|
|
|