Franchising Expos: The Due Diligence and Opportunities – First Steps
A few months ago I participated within a Franchising Expo where I came face to face with numerous members of the public looking to either become a franchisor by franchising their existing business or instead make a purchase direct from a franchisor and/or one of their franchisees to become apart of their franchise network.
Franchising Expos are great opportunities to gather information and investigate the franchising industry. Becoming a franchisor or a franchisee is a serious undertaking and I suggest the more research that is taken before making any decision, the more likely you are to pick the right path for yourself.
While not every franchise system will be displayed, this is still an opportunity to see various groups that are displayed and ask questions to learn more about franchising. There often also tends to be educational sessions as well as opportunities to talk direct with or get connections with various franchisees and/or legal, accounting, business and/or government experts within this area.
Saying this, Franchising Expos should only be one part of a person’s due diligence into the franchising industry. There are numerous free resources out there that can give you an initial good head start. This includes visiting the ACCC website that has material on franchising for franchisors and franchisees to help them understand the industry, and the rights and obligations on each party.
Finally, as you satisfy yourself that this is something you want to move forward with, I recommend you write a list detailing your goals (now and in say 5 years) and any concerns, then take this to your franchising specialist lawyer and accountant (just check what exactly is their franchising experience first) as you work out whether franchising is right for you, and if if it is, the next steps forward.
Please note this does not purport to be comprehensive advice relevant to your circumstances. Consequently, specific legal advice for each of your circumstances should be obtained first before taking or not taking any action in respect to this area.