September Franchising usa 3#11

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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 don’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.