FRANCHISE DUE DILIGENCE
Franchise relationship is a relationship between a party who gives franchise and one another who receives franchise. Failure in franchising is also a failure in how to “give and receive”.
Basically, franchising includes a franchise policy and including, a franchise management policy, for the purpose of operating the franchise business of franchisor and the franchisee. We usually talk about appraising the franchisee’s capacity, about the risk of breaking policy by the franchisee. But wait! We firstly need to see that the interaction between franchisors and franchisees is governed by management method, good management method deliver higher possibility of Franchisee’s commitment and engagement and ultimately lead to success; meanwhile bad management method will chiefly cause the failure. In particular, the franchisee needs the franchisor to assist them in handling the management factor so that they are enabled to “obey”, if the franchisor itself does not well manage the franchise policy, how to convince the franchisee to follow?
So why before “giving vow” to each other, in long-term relationships like franchise relationship, the two sides do not get to know about each other?
The franchisor wants to find the right partner, of course, to verify the capacity of the partner before entering the cooperation. In it, including the elements: financial capacity, understanding of the rights and responsibility, the resources needed to invest, the ability to take advantage of the brand to optimize the cost of marketing and branding, and last but not least, the ability to negotiate with the franchisor on relevant policies. Understanding between the “giver” and the “receiver” is the key for the two parties to accompany each other with long-term vision and journey.
By deeply knowing the big picture of franchising activities, Harrison Consultant & Investment provides services as following:
– Developing a franchise policy;
– Independent Appraisal of the franchise policy – assessing the feasibility of a franchise policy before operating in Vietnam with advice from experts who have worked for a long time in many international franchise systems;
– Consult and implement franchise legal documents including:
- Register franchise into Vietnam territory
- Consult and execute franchising reports to authority as regulated
- Build a franchise contract kits
– Consult and represent you to resolve disputes including mediation and/or litigation at court or arbitration.
Our franchise consulting service ensures legal, capital safety and profitability for your investment in franchise business.
Contact Harrison Consultant & Investment
Address: 1st Floor – 64 Bis Võ Thị Sáu, P. Tân Định, District 1, HCMC
Phone: 0937 651 000