Know who to speak with before buying a franchise
- Wednesday, April 11, 2012
There are several things that buyers have to consider before making the decision to purchase a franchise. Not only will individuals need to research which type of organization they want to buy, but also the legal and tax implications of their decision. So during the beginning phase of shopping for a franchise, there are several people potential owners should speak with to understand how each option will impact them.
An individual's first meeting should be with franchise representatives. The franchisor will spell out the qualifications, financial criteria and skills they are looking for in prospective owners, as well as their responsibilities and rights. In addition, franchise representatives can answer questions individuals may have about the structure of the business and rules relating to future growth and expansion. Understanding the latter two rules is important, because it affects the owner's ability to relocate, open new franchises and sell off businesses to others. In addition, those who are allowed to purchase additional franchises may have to do so within a certain time frame, so knowing these parameters early in advance is crucial.
In addition to franchise representatives, individuals should consult with a tax preparer to determine what their tax responsibilities will be once the company is up and running. Business owners, whether they own small companies or large corporations, will be subject to various tax rules and it can be difficult for a first-time business owner to navigate the process and know how to prepare. This may range from handling employee benefits and payroll to whether they qualify for certain tax breaks and credits. Working with a tax agency early on can also help new owners mitigate potential problems and save time and money during filing season.
Lastly, speaking with a business attorney once a contract is drawn up is also important. Business contracts can be long and tedious, and individuals who are not familiar with the legal terminology will need to enlist the help of a professional to know what they're signing. While a franchise owner may operate a company in their territory, they still have several obligations to the franchisor company. Business attorneys can spell out exactly what these responsibilities are, which may help buyers decide if a particular franchise opportunity is right for them.
The Liberty Tax Service franchise opportunity is appealing to a diverse America, ranking highly for its affordability and potential. Entrepreneur magazine has ranked Liberty Tax Service on its “Franchise 500” list of best franchise opportunities since 1998. Liberty Tax Service is the only tax franchise on the Forbes magazine’s “Top 20 Franchises for the Buck (2012)." Our tax franchise is an affordable and viable business choice. Each office provides thorough, computerized tax preparation coupled with superior customer service. For the best small business opportunity in the income tax franchise industry, choose Liberty!