A franchise is not only the salvation to your business model, but a franchise carries many other requirements and procedures, which not everyone is aware of them.
Do you know what is exactly a franchise and what is it for?
The franchise is a type of commercial contract between two independent entrepreneurs, franchisor and franchisee, whereby the first employer (franchisor) gives to second one (franchisee) the right to exclusively exploit a business model in a market for a period of time, using their brand to distribute their goods or services under the brand guidelines in exchange for a series of economic considerations. In short, it is an agreement between independent businessmen.
It may at first glance, seem to many that investing in a franchise is the solution. But not because the name or business model has already been established, mean we should stop carrying out a series of steps when performing this type of business.
First of all, like any business, it requires an economic, financial and a market research, aswell as a business plan in order to thoroughly check all the pros and cons of such investment from the beginning.
Once thoroughly studied and have made the choice of corresponding business, we consider it very important to have good legal advice. This is essential to address the project. It highlights the different legal advice to follow when you open this kind of business:
- The network must be discharged in the Register of Industry.
- Check if the mark is registered in the Spanish Patent and Trademark Office.
- Check that features quality control and if it is adhered to arbitration systems or any code of ethics.
- Require the franchisor’s dossier contractual information includes data identification and registration, licensing, the description of the sector, experience, operational characteristics, structure and extension of the network in Spain and the essential elements of franchise agreement.
- Contrast the information provided by the franchisor to other franchisees in the chain.
Thus, before taking any decision, resorting on specialized attorneys in franchise like those you would find in Daemi Zabala & Asociados could be a great benefit if what you really want is a good advice when you open your franchise.
They will advise you how to perform from the closing of the financing, signing the preliminary contract and form the company and sign the final contract of the franchise.