Buying A Franchise
Get the Thinking of right buying or selling a Franchise? advice Franchising Law is a specialised field so it's vitally important to take advice from a firm with the right expertise The Franchise Law team has over 25 years experience in New Zealand, working with major Franchise brands
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Buying a franchise can be a great way to get into your own business – but there’s still an element of risk involved. That’s why using the right advisors is essential, says Simon Lord
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f you’re thinking of buying a franchise, you’ll find you have a huge range of opportunities to choose from. There are around 600 different franchises in New Zealand and they cover a huge range of industries and operating styles, from man-and-a-van operations to multi-million-dollar restaurants. Many of our best-known and mosttrusted brands are franchises.
Thada Chapman
Senior Franchise Lawyer Thada is qualified to practice in New Zealand, USA (California) and South Africa. Franchising is her specialist area of law and she brings extensive experience.
0800 SOLICITOR (0800 765 424) thada@franchiselaw.co.nz www.franchiselaw.co.nz
But just because a franchise is well-known doesn’t mean that it will suit your own situation, and it doesn’t mean that every new outlet will be profitable, either. That’s why, if you’re looking at buying any business, you need to take good professional advice so that you can be sure you’ve made the right decision and enjoy the peace of mind you need to focus on growing your new business. Strangely, many people don’t bother to do that when it comes to franchises. Why not? Well, having talked to many new franchisees, it seems that too many people: 1. Assume that everything will be okay because the franchise has a good reputation; 2. Think that by not using a lawyer or accountant they will save money on professional fees that they need to invest in the business; or 3. They use an inappropriate advisor – the family lawyer, for example – who might be great at conveyancing but have little experience and few contacts in the franchise world.
A multi-award winning team
Alas, the people who take these appealing shortcuts often learn an important lesson the hard way. While franchising can be a great route into business for many people, as the various profiles in this magazine show, it’s not right for everyone. Research carried out in Australia a number of years ago found that 20 percent of respondents admitted that they had no idea of what they were getting into when they bought a franchise. It suggested that people are prepared to pay $50,000 or $200,000 for a franchise, but they are not prepared to spend the time or money they should on finding out what they are getting into.
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www.conveyancingshop.co.nz
That’s not just scary – it’s crazy. One of the most common causes of franchisee failure is poor choice or inadequate research by franchisees. A small investment now can save a lot of distress later. Franchise New Zealand
Summer 2024
Year 32 Issue 04
