Buying a franchise involves a number of considerations and review of legally required franchise disclosure documents, and you should work with a knowledgeable and thorough New York franchise lawyer to walk you through the process.
On a personal level, you must assess your level of confidence regarding whether you are cut out for the particular business. You should think about your experience in the particular industry and your experience as a business owner.
So besides reviewing the documents provided by the franchisor, you should create your own independent business plan as well as projections for financial performance for the first three years.
You should also note that the franchise disclosure document that the franchisor provides to you contains what the franchisor is required to furnish to you by law. You may want to look at it as the beginning of your investigation process rather than as the answer to all of your questions.
With respect to the franchise disclosure document itself, the state and federal governments regulate the buying and selling of franchises, requiring franchisors to disclose certain information, which includes the following:
In New York, there are additional pre-sale disclosure requirements as well. Even if the franchisor is a national company located in another state, that organization still needs to comply with New York regulations.
Consulting with a qualified New York franchise lawyer ensures that you understand the documentation and whether you are making a good choice given the franchisor’s history in business and your long term goals.
Contact us today and let us know how a New York franchise lawyer can assist you.