Even though you have always dreamed of being a business owner, starting your own venture seems out of reach. Depending on your interests and skills, tapping into the success of an existing franchise might be the solution. After all, according to the U.S. Census Bureau, franchises exist in more than 300 different industries.
If you do not want to be in business by yourself, you might consider becoming a partner in an existing franchised venture. Here are some suggestions for doing so.
Research the partnership
Business partnerships can be somewhat like families, so you should try to get to know the other partners in the franchise. You also should become familiar with the employees. Before agreeing to anything, though, you want to know as much as possible about the franchise, including its profits, losses and litigation.
Review the documentation
Before you become the latest partner in an existing franchise, you are probably going to have to sign some legal documents. It is important not to take these documents lightly, as they may assign you significant responsibilities and limit your legal remedies. Simply stated, before you put pen to paper, you must understand exactly what you are signing.
Understand the consequences
Being a business partner in a franchise might come with significant tax consequences. You must understand these before joining the partnership. Moreover, you need to know what happens if you want to leave the partnership. For example, you should understand whether you might lose your investment.
Ultimately, while there is some considerable work to do before becoming a partner in an existing franchise, you probably have some time to make the right decision.