Undoubtedly, every businessman wants to earn money by selling a franchise. This applies not only to well-known companies, but also to new ones. Having just started a business, many entrepreneurs are sure that their earning scheme is reliable. That is why they strive to earn money by selling a franchise.
This scheme may be considered less dangerous, but even here franchisees should be careful.
A "raw" beauty salon linkedin database franchise (in our case) implies the implementation of a poorly prepared project. The ambitions of an inexperienced franchiser may be to the detriment of his partner. In such situations, it is difficult to talk about any support and long-term cooperation, since new enterprises do not always manage to maintain their positions.
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If the franchisor offers a "raw" franchise, then the commercial concession agreement is not concluded. As a rule, franchisors offer other documentation. In principle, this is logical, since no one wants to take on unnecessary obligations and responsibility. For example, the products or services may be of poor quality, and in this case the franchisee will be right.
Businessmen often use the term "franchise" rather arbitrarily. They do this unintentionally, but without wanting to, they mislead franchisees. It is difficult to say that such a scheme is pure fraud.
The final word still remains with the franchisee, as he decides whether to work under an unverified franchise or not. It is possible that things will go well even without a commercial concession agreement. But it is worth understanding that in such cases the law does not protect the franchisee in any way.
Former franchisee
Often, a fraudster can also be a former franchisee who previously worked under a certain franchise. Let's say that at a certain stage of interaction, the partner realized that he does not need the support of the franchisor. Paying royalties can be burdensome, and complying with corporate standards is inconvenient.
Taking this into account, the franchisee begins to think about whether he needs a franchise or not. After receiving invaluable experience and all the technology of earning, it costs him nothing to run the business independently.
If a franchisee really knows how to work in a particular industry, he or she may well become a serious competitor to the former partner. To do this, the businessman may even use similar attributes of the trademark and go beyond the current legislative norms.
As a result, the unsuspecting franchisee becomes a prisoner of a difficult situation, since the accusations may initially fall on him. To avoid such an outcome, you should very carefully check the franchise and be sure to inquire about the commercial concession agreement.
If the franchisor refuses to conclude it, then it is not worth working under such a beauty salon franchise.