By: Jason Maxwell
Submitted: 2012-01-06 07:24:18 | Word Count: 454
Contrasted to a normal business venture,
franchising has more appeal. We have seen a lot of success stories using this process. But the onset of a
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franchise is the most crucial stage of the industry. Let us discuss on the use of templates for the requirements in a franchise such as FDD,
franchise agreement, and franchise operation manuals.
It is a wise idea to hire the services of a franchise expert in order to find out if your kind
of business is going to be successful in the franchise industry before you begin your venture. Find out if your business can make it as a franchise
model. The expert will make a feasibility
study and you have to trust this expert if he finds that your business in not a solid investment. Only when the expert gives the go' signal do you proceed with your plan.
(FDD) templates, and a franchise operations manual template is not commendable and its not going to save
you anything. For instance, the
FDD template consists of 12 chapters of data, touching myriads of topics & possibly even more secrets
about the business operations. When you
disclose it appropriately it will prevent some problems in the future that may involve going to court.
Litigation costs regarding franchising are very high today. So if you are using a ready-made FDD template, expect to have future litigation expenses. You may save on an FDD template but
the costs of litigation will get you. It is better to draft a new FDD from scratch than just revise a
template to suit your kind of business.
A similar thing goes when
utilizing templates for franchise agreements. The contract must be drafted from
a skillful business perspective as well as a legal one. A delicate balance between the two should exist. You can never find a template that will meet
both standards of business & legal measures. These
agreements have to be cross referenced with the disclosed topics in the FDD, revising the draft would be a
real challenge and would therefore cost more.
You can use other manuals as a
reference for the drafting of your own operations manual, which would help you make things clear. But using a single manual as a template for your company could be unfavorable to the business, a legal risk.
The
bottom line is using templates might save the company a lot of money but in the long run you will end up
spending more than the initial cost because of legal litigations.
Author Resource:-
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