Lawyers Working With Business Essay Example | Topics and Well Written Essays - 2500 words

Lawyers Working With Business - Essay Example to consideration include the identity of the business, which should have distinguishable factors in the market place such as trademarks and service marks. It is also essential to protect the identity of the business by registering the trademarks and service marks. Experience is also a decisive factor as it shows the viability of the business concept as well as provides credibility among the franchises. Profitability is also essential as the main goal in business is to make money profitable businesses are, therefore, attractive. Furthermore, the franchisee requires to submit royalties to the parent company based on the revenue. It is essential to, therefore, to ensure that the franchisee is capable of running a sound business in order for the parent company to benefit. Business plans as well as marketing plans are essential components in this process as they ensure that the prospective franchise businesses have an operational framework.2 Other factors that are essential in setting up franchise include the training necessary for the franchises. Significant amount of training in necessary in these instances so that the franchises operate on the same standard as the parent company and training plays a crucial role in this respect. The concept of franchising faces some drawbacks that must be put into consideration by any business contemplating the concept of franchising. These drawbacks include the reduced amount of control over the franchise in terms of products and services which may subsequently lead to a variety of quality across stores. The potential of earning revenue also reduces as the parent company entitlement is only a portion of the revenue from the franchisee. It is, however, noteworthy that there is a higher potential for growth and success of franchising... This paper stresses that leasing eases the budgeting process of the company as the lease payments fixed initially and forecasting the cash and budgeting requirement becomes easier. The lease cost can be incorporated into the business budgets more easily due to the regular occurrence and allows a better control into the business cash flow. Seasonal or skip payments can be arranged in this scenario to reduce the time and financial constraints. Leases also facilitate tax benefits as it establishes flexibility in gaining tax benefits from various situations, therefore, facilitating a reduced cost in the equipment. Leases usually considered as operating costs and often deducted from the taxable profits of the business. When properly structured, a lease agreement allows for tax benefits passed on to the Lessee due to competitive rates and lower fees. This report makes a conclusion that that leasing provides an out of the balance sheet financing where the business obligations to pay the lease in not included in the balance sheet. This obligation, which is a liability to the business, does not reflect on the balance sheet and affects the solvency of the business as the liability of the equipment not included. Because this lease liability does not reflect in the business balance sheet, the measure of financial leverage according to the balance sheet improves. The ratio of total l liabilities to equity improves, therefore, resulting in better credit ratings and ultimately low interest rates on finances towards the business.