Many people who buy a franchise think they are buying a business of their own. In many regards it does resemble your own business. But in reality you are leasing or renting a business. Many who are Independent Dealers are also generally buying a job more than buying a business. Recently a think tanker type who is also a CPA stated that;

“I have red over more than a few of these independent operator agreements. Many of these independent operators are nothing more than gas station attendants.”

Indeed and like 7-11 “adapt or die” attitude, as the Master Franchise from Japan said after he bought out Southland and told the dealers; “Now you do it our way!” So in essence all 7-11 owners are nothing more than employees who had to pay to buy themselves a job.

Having written franchise agreements, I can say that the boilerplate bandits out there often have clauses which look more and more like those independent dealer or operating agreements the CPA discusses and has read over. I was a board of Director member for the American Association of Franchisees and Dealers AAFD for two years, you see a lot, I’ll tell you that.

Some of the history of the franchised gas stations, SBA loans and operators coming over after the fall of the Shaw of Iran are certainly interesting. Many of those folks came over with cash and bought into a business of their own which they knew and understood; oil.

The CPA further states that; “Many of them only lease the building and equipment owned by the oil company, and the “franchise or other operating agreements” are often NOT designed to empower the operator.”

Sure and we know Ray Kroc told a Harvard MBA class in a speech that McDonalds was not in the hamburger business it was in the real estate business. Now a-days franchisees sign a master lease with the franchisor and often the franchisor is a lessee between the franchisee and landlord; that is if the franchisor does not own it out right. So if you are considering a franchise of your own or becoming an independent dealer, you may wish to consider what you are getting into?

Author Lance Winslow runs WorldThinkTank.net.

Why you need an independent business adviser

To be successful in a small business you will have to be able to plan, put your plan into practice, take action, see what is working and what is not and make changes when necessary.To do all these things will be challenging for most small business owners by themselves. This is where an independent business adviser comes in, they are not invested in any way in you or your business and are therefore impartial.

How to choose an independent business adviser

Choosing an independent business adviser is not likely to be an easy task to accomplish. It is important that you choose one who has been in the field for a good length of time, possess the expertise and high integrity. You must be able to have a lot of faith in your independent business adviser.

One good place to start your search is with the other professionals you already work with like your banker. They may be able to recommend an independent business adviser to you. You can also ask your friends and acquaintances.

Be sure to state clearly to your adviser that all your dealings and correspondence with them is confidential and privileged information. This is important because when you are in business you certainly do not want information pertaining to your business falling into the wrong hands. Find out if they will enter into a confidentiality agreement with you.

As certain from your would be adviser whether they will enter into an agreement not to be advising any of your competitors whilst their services are engaged by you. This agreement can be in force for as long a time as you think is prudent, or you can negotiate the time period with the independent business adviser.

An independent business adviser is there to help you to construct the future of your business, determine the course the business should take and make sure it stays the course no matter what happens.

Author Alet Viegas runs CNS Zone.