Choosing the Right Advisors When Starting a New Business

Who should you speak with or seek advice from when you're researching a new business or thinking about starting a business? Here are some do’s and don’ts.

Understanding the Limitations of Well-Meaning Advice

Avoid relying too heavily on input from your neighbors, family members, or friends. While it's natural to want to share and discuss your plans with those close to you, their advice, though well-intentioned, may not be fully informed.

The key issue is that they haven’t invested the same time and effort in researching the business as you have. If you’ve spent the last 60, 90, or even 120 days deeply researching a particular business, those you’re consulting with likely haven't done the same. They simply don’t have the same level of understanding or insight into the opportunity that you do.

The Essential Role of a CPA in Your Franchise Journey

It's essential to consult with professionals during your franchise journey. One key expert you need to speak with is a CPA. They can help you analyze the financials of the franchisor and review the proformas you’ve created using your own numbers.

The Importance of a Franchise Attorney

It's crucial to consult with a franchise attorney who specializes in franchise law. You want someone who lives and breathes franchising, someone who routinely writes and reviews franchise agreements. However, it's important to note that a franchise attorney cannot review an agreement they have personally drafted due to a conflict of interest.

While you might know a general business attorney or have a family friend who practices corporate law, these professionals typically lack the specific expertise needed in franchise law. It's like going to an eye doctor for a toothache—it just doesn’t make sense.

To ensure you receive the proper guidance, it's essential to engage with a franchise attorney who truly understands the nuances of franchising. When you're nearing the final stages of your decision and ready to move forward with a particular franchise, make sure a qualified franchise attorney reviews the franchise agreement to protect your interests.

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