It would help to know the importance of due diligence. This law requires you to evaluate the franchise before signing it. When in agreement, you are expected to be committed to the new business for an extensive period. This brings the importance of evaluating the franchiser and the lucrativeness of the franchise. It is beneficial to recognize that just because the franchise opportunity involves a good product or services does not mean that it is best for you. There is no guarantee that the franchise will be beneficial. They are never similar. It is up to you to use the information from your research to establish whether the franchise is most suitable for you.
It would be best to involve a qualified professional. At this stage, you know the franchise of your interest. You have also received the franchise disclosure document (FDD). The FDD contains disclosures on the business and legal issues. The issues include information on the franchiser and the franchised business and the amount you are required to give to the franchiser. With the information being difficult to process, it is preferable if you seek help from a professional franchise lawyer. Their work is to review and investigate all content in the Franchiser's FDD. They will compare the FDD to your expectations and help you see if it is fit.
You will benefit more by contacting the existing Top American Franchises and knowing their take on the opportunity you are likely to take. You can use their opinions to gauge what the future holds for you. After getting the chance to interact with them, find out about the franchiser support, the upfront costs, the profitability of the business and if they were satisfied with the opportunity. In most cases, contacts of the franchisees will be included in the FDD.
You need to that you have the chance to negotiate. Many franchisers have made it seem like the agreements are inflexible. You need to that the law allows franchisers to modify the agreements. This is possible when one of the franchisees needs to expand their franchise rights. However, some agreements cannot be adjusted. Some things you can negotiate include your right to renew your rights and transfer the franchise. Also, it may include how large your territory is and the power the franchiser holds on it.
It is advisable to walk away from the opportunity if you are unsatisfied with the negotiations. It is best if you watch out for any red flags and inconsistencies.