Are you looking to find a franchise business to invest your hard-earned savings into? Stop and think about it for a moment. Everyone who is selling will present you with the best facts and numbers about the proposed investment. They will tell you what you want to hear in order to make the purchase. But with the right set of allies can help you unravel the complete picture for a better understanding of your business investment. Find out why you must pay your advisors to say ‘No’ and who they are in this article, which is an excerpt from The Franchisee Handbook: Everything You Need to Know About Buying a Franchise.
1. Banker
A banker makes money from lending or loans. In other words, a banker makes the money earn more money from good loans. Once you have shortlisted your franchises that you propose to invest in, take them to the banker for scrutiny. He acts likes a professional skeptic who can give his expertise and experience to help you see the flaws or advantages in the proposed investments. Nevertheless, do not forget that since he is excited about creating loans, and could go after your collateral if all fails, he is not at much risk. So ensure you also complete your
2. Accountant
What motivates an accountant is his/her hourly fees. But you can’t bill much if you have not found anything worth bringing to light. Imagine your accountant sending you a fat bill and saying everything looks good on the paper. Not only will you never hire them again, but you will also find someone else to redo the job. Moreover, the accountants’ job is to watch out for your interests. So they have to find every false assumption or little problem that they can point at. Moreover, if the franchise fails after a good review from the accountant, they will get a bad referral for poor judgment. So if you have not already hired an accountant, then find one and sit with them to fully understand the financial statements and underlying assumptions.
Useful read: Basic accounting know-how for a franchisee
3. Lawyer
The lawyer is there to play the devil’s advocate for you. The lawyer is not expected to understand the financial side of the business. Thus, the lawyer comes into the picture only after the banker and accountant have done their research into the numbers. Also because if the business is not strong financially, there is no need to proceed into the legal aspects of the contract.
Remember that all these allies must bring very specific expertise in the field of franchise. You could interview multiple candidates who can prove their record and referrals before you finalise on one. Be diligent and select your allies with caution to help you find the best franchise business to invest in.
Useful Read: Important questions for your franchisor before you buy
Similar Read: Virtual Discovery Day guidelines
Source: Entrepreneur
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