Oct 24, 2022 - Blog, Franchise Articles by |

Now that it has been a few years since colleges first started offering certificate and degree programs in franchising, we are seeing more graduates forego the job market and pursue franchise ownership. If you are a recent graduate—or if you are preparing to graduate after the upcoming spring semester—and are thinking about buying a franchise, there are some facts you need to know that you most likely didn’t learn in school.

5 Important Facts About Buying a Franchise for Recent (or Rising) College Graduates

For example, here are some facts that all prospective franchisees—regardless of their age or business background—need to know:

1. Understanding the Franchise Model Puts You On the Right Path

When buying a franchise, a key first step is to ensure that you have a firm grasp of the franchise model. Too often, prospective franchisees move forward despite not having a clear understanding of what it means to be a franchisee. Since you’ve studied franchising in school, you are on the right path—now you need to expand on your academic knowledge through real-world experience.

2. There Are Some Things You Will Only Learn Through Experience

No matter how many classes you take, there are some things you will only learn through experience. It is important to treat buying your first franchise like a trial-and-error process. If you start down the path of buying a franchise and decide that you aren’t ready or discover an issue that makes moving forward unwise, you should use this experience to guide your subsequent efforts to pursue a different franchise opportunity.

3. Making An Informed Buying Decision Requires Business, Finance and Legal Insights

To make an informed buying decision, you will need to understand the franchise model, the specific franchise you are pursuing, the financial implications of moving forward and the legal risks involved. Even for experienced franchisees, this requires working with experienced professionals. As you move forward, you should work with an accountant or financial advisor as necessary, and you should consult with an attorney about a comprehensive franchise business review.

4. Failure Can Cost You Long After Your Franchise Terminates

As a franchisee, failure can have long-term consequences—even more so than failing as an independent business owner. If your franchisor terminates your franchise agreement for cause (i.e., non-payment of royalties), you could be on the hook for “lost future royalties” along with loan payments, lease payments and other continuing financial obligations.

5. You Can—and Should—Take Steps To Manage Your Risk During the Buying Process

While buying a franchise is inherently risky, there are steps you can—and should—take to manage your risk during the buying process. This involves working with experienced professionals as discussed above, conducting thorough due diligence, and taking the time necessary to make a fully-informed buying decision.

Contact Franchise Attorney Jeffrey M. Goldstein for More Information

If you are thinking about buying a franchise after college, we encourage you to contact us for more information. To schedule a call with attorney Jeffrey M. Goldstein, call 202-293-3947 or request a free initial consultation online today.

Lawyer USA

Complex Commercial Litigation Law Firm of the Year – USA

Lawyer USA

Complex Commercial Distribution Litigation Representative

Lawyer USA

Antitrust & Franchise Law Firm of the Year – Washington DC

Lawyer USA

Best Franchise Lawyer of the Year – New York

Lawyer USA

Best for Franchise Disputes – USA

Lawyer USA

Complex Commercial Litigation Law (Franchisees and Dealers) 2021 – USA

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Downtown Chicago Office

30 South Wacker Drive 22nd Floor #3341,
Chicago, IL 60606

Phone: 312-382-8327

Free Consultation

Free Consultation