When you become a Transworld franchise owner, you’ll be responsible for brokering important business deals every day. One of the best parts of owning a Transworld franchise is that you can count on receiving top-notch training and support to prepare you for the demands of the job. Here’s a sneak peek at some of the legal mistakes we caution our franchisees against.
Not Requiring an NDA
As a Transworld franchise owner, you’ll be responsible for discreetly managing sensitive information about the businesses you represent. It’s important that you treat these details carefully. Business buyers need to know about the performance of the businesses they’re interested in purchasing, but it’s important that these details remain confidential. That’s why Transworld franchise owners know to require potential buyers to sign an NDA (non-disclosure agreement) before they’re given access to the sensitive details of any business. Then if a business deal falls through, business owners don’t need to worry about their information becoming public knowledge.
Not Putting Terms in Writing from the Beginning
It’s not only important to put the terms of a sale into writing at the point of sale, it’s important to keep track of communications like offers, expectations, negotiations, and so forth in writing from the beginning. Keeping track of these considerations is a great way to ensure that buyer and seller are on the same page, and that there are no misunderstandings throughout the process. Transworld franchise owners learn about the best ways to stay organized when they participate in our training and support programmes.
Not Implementing a Reverse Termination Fee
At some point in the process, it can become costly and detrimental to sellers if buyers take up their time negotiating when they aren’t seriously interested in buying. This can keep sellers from identifying just the right buyer, costing them time and money. A reverse termination fee is a great way for Transworld franchise owners to ensure that only serious buyers are reviewing the seller’s information and negotiating with them.
These are just a few of the legal mistakes Transworld franchise owners should avoid. With years of experience in the industry, our franchisees are well-prepared to handle these and other legal obstacles when it comes to selling a business. Opening a business brokerage on your own might be tempting, but why risk making these and other rookie mistakes when you can capitalize on our expertise?
Get in touch with us today to learn more about the process of becoming a Transworld franchise owner!