Entering into a new business opportunity takes strength, perseverance and knowledge. Franchises often do not require investors to have previous experience in the industry. However, it helps to have a firm grasp on smart business practices and knowledge about the brand’s goals, processes and the contract you signed.

Here are three common questions about franchises:

1. What documents govern franchise practices?

According to U.S. Franchise News, there are three distinct groups that provide the regulatory framework for franchise brands. These include federal and state registration and disclosure laws, the Federal Trade Commission (FTC) Franchise Rule and Business Opportunity Laws.

Official legislation will often differ from state to state, usually on the requirements and recommended practices outlined for franchise owners. It is important to become comfortable with your state’s disclosure laws and what mandates are required to avoid litigation.

In addition, the FTC requires franchisors to provide a complete pre-sale disclosure document for your own protection. Business Opportunity Laws have been enacted by 23 states in the U.S, reports the news source. These laws were created to regulate the sale of new business ventures and provide more information to franchisees.

2. Can you have a business partner?

A majority of franchises allow you to have a financial or operating partner. However, it can largely depend on the feedback of the franchisor. Consult with a franchisor about the option before signing a contract, and draw up any additional legal documents to accurately divide assets and responsibilities.

3. How much research should you conduct before buying a franchise?

A franchise is a new business opportunity that can provide you with success and independence. The pre-prepared procedure models and access to advice is a tempting offer - however, before investing, research should be conducted. According to the Franchise Advisory Centre, it is recommended that a potential franchisee spend at least one hour of research for every thousand dollars a person is preparing to invest into the business. The research will come in handy and help prevent you from making a faulty professional decision.

The Liberty Tax Service franchise opportunity is appealing to a diverse America, and ranked 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!