One of the first questions that many franchisees will have when the franchisor goes into bankruptcy is “Can I keep running my business?” The answer to this is a resounding yes. When a franchisor declares bankruptcy they lose all the rights they have to their name and brand. This means they have no legal grounds on which to try and prevent you from using the name in your business. However, you need to make sure that you want to use the brand name for your business. People may associate your franchise with the bankruptcy and stop from visiting your business.
If you have specific questions about what happens when a franchisor declares bankruptcy, contact a Hawaii bankruptcy attorney at 1330 Ala Moana Boulevard #202, Honolulu, HI 96814 (808) 554-0104. They can give you details on what will happen with your particular franchise in the event of bankruptcy.
In a typical Hawaii bankruptcy you should immediately cease sending royalty payments to the franchisor. Once the bankruptcy was declared, the franchise agreement immediately became null and void. After the agreement is voided, there’s no reason to keep sending your hard earned money to a failed company! You may end up needing every penny to try and avoid the negative press that may come with being part of a bankrupt franchise.
You may also want to contact some owners of other franchises in the area to see how they have been affected by the bankruptcy. By partnering together (even if it is an unofficial partnership) you can help each other to weather the storm and make sure that your individual businesses are not harmed by the bankruptcy of the parent franchise. Try to avoid the negative publicity that comes with the bankruptcy of the franchisor. You need to do everything possible to make sure you are not dragged down by the parent company’s problems.
There are many benefits to starting your own business. Starting a business is always a rewarding experience, whether you fail or succeed. There are many risks in the business world. If you don’t have a lot of business experience and don’t want to risk losing a huge investment, you might want to consider buying a franchise. The benefits of owning a franchise are many. You will be under an umbrella brand name that is instantly recognized and you will get assistance from the Franchisor. If you don’t want to go that route, you can always start your business small from the comfort of your home and then branch out when it begins to outgrow your home. Here are some things you should think about when starting a new business.
What do you want to sell, product or service?
What will your business sell? This is a matter of finding the right business for your qualifications, skills, and abilities. Are you skilled in management and know how to promote products? Maybe you will succeed in a business that is retail sales oriented. Are you a professional in any specific service? Maybe you should focus on marketing a specific service. Find out exactly what it is your business will do and start defining your goals. The next step is to decide whether or not there is a demand for the business you have in mind.
Evaluate the demand for what you have to offer
Do some market research to find out if there is a demand for the goods or services you want to offer. Without a demand, it makes no sense to supply. When there is a demand for your goods or services, the next thing you have to ask yourself is if those service and products are the best for your business or not. From here you can either choose to go with what you got, or go back and compare various options against each other and choose the one with the highest demand and least competition. The best way to start a small business is to weigh all your options, carefully choosing the one that is most profitable.