A House of Straw

One of the common trends of starting a business is to buy a franchise of a reputed firm. However with franchise there are many other factors which come into play the moment you buy it. One of the key factors is franchise litigation along with legal liabilities to which you are answerable to at any point of time. It is highly advisable to maintain your operation records. Again if you are franchiser and have sold a franchise to a vendor you have to ensure that that there minimum flaws in your legal documents as they can play a very important role during any litigation process. One of the points is that litigation is a fact and if you are reluctant about it then it’ like building a house of straw. This simply means that the house may provide you a good shelter but it’s not weather protected and you can face serious issues in future. Same is the case with franchise. However this doesn’t mean that the business model is fraught with. One of the fundamental things to begin with is make your basics right. Try to incorporate and build a solid legal base for your business. If we talk about the franchise agreement it is generally in the form where you have to either take it or leave it. With the inclusions of more laws to it today most of these agreements are even more bullet proof. To summarize all these points one can say that in the nutshell the biggest liability today is the desire of the franchisor to be overprotective with the ways in which franchisees conduct their day to day business.