What steps should I take if I am considering opening a franchise?
Franchise businesses are booming in Lubbock, Texas and across the state. In recent years, entrepreneurs have flocked to Lubbock to open a wide array of franchises. Well known businesses like Dunkin’ Donuts, Panera Bread, Baskin-Robbins, and BurgerFi are experiencing success in the region, despite initial concerns from national franchise corporate owners. As a smaller city, some franchise owners were reluctant to open locations in Lubbock, but attractive real estate prices and a strong customer base have leant themselves to franchise success. Our Austin, Texas franchise law attorneys discuss some important steps to take if you are considering opening a franchise in Texas.
Select Your Franchise Carefully
Your selection of a franchise will be one of the most deciding factors to your ultimate success. You should start with a list of franchises that you have interest in and carefully research each of them. Review the franchisor’s brochures and evaluate the industry. When you have narrowed down your list, schedule a meeting with the franchisor so that you can ask any remaining questions you have and determine whether the company seems like a good fit.
Consult with a Franchise Law Attorney
Once you have a few potential franchises in mind and have submitted your application or qualification sheet, you will want to meet with a franchise law attorney. Your attorney will review the Franchise Disclosure Document (FDD). This lengthy but critically important document is provided to all prospective franchise owners. Your attorney will have experience with FDDs and be able to explain the relevant disclosures and terms to you.
Create a Business Entity
You will need to select the right business entity for your new franchise. You have several options for a business entity, including a Limited Liability Corporation (LLC) or S Corporation. Your selection of a business entity will impact your ability to finance your franchise, management structure, and much more.
Opening a franchise in Texas is not easy, but a successful franchise could be the start to an exciting career. Contact our Texas franchise law attorneys at The Kumar Law Firm PLLC for individualized assistance with your potential franchise.