ex per t advice
Richard Lieberman, Attorney, Jennings, Strouss & Salmon, P.L.C.
KEEPING IT FRIENDLY AVOIDING PITFALLS WHEN GOING INTO A FRANCHISE WITH FRIENDS OR FAMILY Entering into a franchise with friends or family can have great benefits and be a mutually rewarding experience. Partners with existing relationships often start with a higher degree of trust, believing they know the skills, experience, and capabilities of their potential partner. Franchising USA
Too often, new business partners plunge into the endeavor without a full understanding of their individual roles, experience, and expectations. When things donâ€™t turn out like the owners anticipated, frustration and resentment often build. For example, an owner finds she is working 60-hour weeks, while her partner leaves early, yet draws the same compensation. Or, one partner resents the micro-management from the other. Partners who thought they were growing a successful business together sometimes end up with not only an ailing franchise, but a damaged relationship as well. Dysfunction is not inevitable and there are proactive measures to avoid common
pitfalls. Implementing these steps can help lead business owners to a long-term, rewarding partnership.
Communication and Documentation Communication and documentation are keys to success. Formal communication, like holding regular company board meetings, helps assure important items are addressed in a thoughtful manner. Informal communication provides the opportunity in the interim to resolve issues as they arise. Establishing methods to cooperatively resolve issues leads to more productivity and satisfaction.