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Thinking of buying a franchise in a foreign country?❌ I am going to give you 9 tips to consider before buying a franchise in a foreign country.
1. You should know that you are not buying the business system, you're renting it. You're simply acquiring the rights to use a franchisor's business system, trademark and 'know-how' for 5 or ten years, depending on the term of the franchise and any renewal rights contained in the franchise agreement. Think of it like a lease.
2. Your franchise’s renewal and assignment rights are not automatic. Virtually all franchise agreements allow for the right to renew for at least one term, and permit the franchisee to assign the contract. But there are always conditions (and fees) that go along with the exercise of renewal and assignment rights. If you don't meet those conditions, you wont be able to renew or assign.
3. Critically assess the franchise contract and all financial information given to you. Be very careful with signing the franchise agreement.
4. avoid entering a franchise agreement where both you and your family members have to guarantee the contract. It only means the franchisor has your family to sue if the business fails. If at all possible, limit your exposure so that only one of you assumes all the risk.
5. Trademarks. Does the franchisor own or control the trademark? If there is, it symbols that your franchise branding is a great one.
6. Pricing for products. What assurances are there that the products for sale by the franchisor can be bought by the franchisee at competitive prices? What if the products for sale have to be shipped from another part of the country, or another country? Have you factored in freight costs and duty?
7. If the franchisor is not a member of the country’s Franchise Association, ask 'why not?' Keep in mind you need a stable franchise to secure your investment.
8. Don't let your expectations get away from you. Like any other investment, acquiring a franchise involves a high degree of risk. Some franchises work out very well for the franchisees. And some do not. Do not sell the concept to yourself. Be prepared to walk away.
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My #new #screenplay has been lucky enough to win at this #festival this #saturday . Will make it into my new #feature #film at the end of the year. Any #investors or #producers get in touch. Looking forward to a good night in #leicestersquare #london with @saxo_clare_powerlifter @tiffanyellenrobinson @cassandrafrenchbites @jsollyart1 and @bearcave_chazzy . #awards #lovethis @filmfestivalguild @blastoff_la
Do you like this plan? If so would you use it?
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When you find yourself embroiled in a fight, or part of a heated debate, it can be tempting to try to win the argument.
It's only human to want to be "right," which is likely why we get into fights in the first place.
But the single best thing to keep in mind when arguing isn't winning, but listening, understanding, and then diffusing the fight.
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Keep an eye on the performance of these stocks as the Chinese markets suffer.
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Source - HSBC.
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