The first thing to do when acquiring a business in Alberta is to decide whether to start a new venture, buy an existing business or purchase a franchise. Along with the cost to acquire commercial real estate, the running expenses, projected returns, the value of the time and attention it will require must be considered. Knowing and understanding how the business will meet the goals of the purchasers will improve the chances of success.
Buying an existing business is one way to avoid the risks and expenses of starting a new business. However, even buying an already established business comes with pros and cons. One option is to buy a franchise that has already proved to be successful. Along with the purchase comes benefits that include marketing and publicity, established management and production methods, advice from knowledgeable franchisers and superior buying power.
There are trade-offs in purchasing a franchise. The franchisee has very little control over matters like production, products and price. He or she must follow strict rules and regulations in all aspects of the operation, and there will likely be little room or opportunity for the use of his or her individual creativity to benefit the business. Franchisers typically impose many obligations and restrictions upon franchisees.
Anyone in Alberta who is considering the acquisition of a business might be wise to consult with a lawyer who has experience in all aspects of business and commercial law, including commercial real estate. Legal counsel can provide valuable advice and services from the start and throughout ensuing transactions. A lawyer can also assist with the negotiation and drafting of all agreements and contracts.