So, you want to buy your own franchise but you have no idea where to start. Well, start here with some tips to consider.
Assess yourself
What type of franchise do you want to build? A home-based, office-based or retail-based. What about work hours and the amount of capital needed? These choices help you choose your franchise model which will achieve success.
Consider costs
There are multiple costs needed before starting a franchise. For example, there is an initial payment to the franchisor which could be a few thousand dollars or a few hundred to thousand dollars. There is an operating fee to get the franchise running.
Research the franchisor
Research the franchisor as they may try to make deals look more attractive rather show any problems with it.
Consult with an attorney
When you research, you will come across the Financial Disclosure Document (FDD) which shows the bankruptcy filings, litigation, hidden costs, and other important information that may not have been made known to you. You can take this to an attorney so they can see if there are any problems with the franchisor. This will be around $1,500 or $2,000 but it is worth it.
Talk to franchisees
Interview the Franchisees to get a rough idea about the franchisor and here are some questions you can ask them.
- How long have you been a franchisee?
- Did it meet your expectations?
- What has surprised you?
- Have you made more or less money than you thought you would?
- Would you recommend the company to a friend?
Be willing to work hard.
Franchising is a profitable business that requires time, money and energy, especially in the first few years so make sure you are willing to work hard or you will waste the money you invested.
If you follow these tips, I am sure that you will be successful in your future endeavours and you make the right choices.
Source: Small Business Trends
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