Buying a foreign franchise
Buying a foreign franchise is on the one hand highly lucrative and on the other side highly risky. Arrive at a decision to buy a foreign franchise only after doing a lot of research and making sure that you are taking the right decision.
Here are some of the important factors you need to take care before investing in a foreign franchise:
• The legal implications needs to be clarified as the native laws might clash • Ask and find out if the investment would be safe, what are the costs involves and how would the payments be made • You need to clarify details about the agreement, the licensing formalities, the commission payments etc very carefully • If you are going to be the first franchise in the country, then take extra care. Enquire about the past performance of the company in other countries, know what are their business goals and how profitable would their business be • Cultural differences might be a problem between the franchisor and the franchisee so make sure you can build a good relationship in a culturally different atmosphere • Take advice from lawyers, consultants and other franchisees before investing • Adhere to the governmental rules and regulations involved in running a foreign business