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How to Franchise
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Franchise is the agreement or license between two legally independent parties which gives:
- A person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor)
- The franchisee the right to market a product or service
A prospective franchisee should always undertake research that includes and is not limited to:
- Annual financial statements and/or management accounts
- A list of stock
- Valuation of assets to be purchased
- Staff audit
- Contingent liabilities of the existing concern
- Transferring concern to a new legal entity
- Checking customer base and suppliers with existing contracts.
Source: www.trade.gov
http://www.trade.gov/sabit/static/Introduction%20to%20Franchising-IFA-Eng_Latest_tg_sabit_005404.pdf
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