Dec 262011
 

Before you buy a franchise, read this

Ok, so you’ve decided that the best way into small business for you is to buy a franchise and you’ve now got a short list of potential franchisers that suit you. The next question is how do you best compare them to ensure you pick the right one? Using this buying a franchise checklist will allow you to make an informed decision plus make sure you avoid the pitfalls of buying the wrong one.


In this series of posts, I’m going to list out a whole load of things for you to think about and check up on but there is one piece of advice you need to keep in mind for all the points as you work through the list:

Do not believe anything the franchisor says unless you can independently verify it yourself from other sources.

That may sound a little harsh but don’t forget that you’re about to spend a lot of money on the franchise, you will probably be locked into a contract for 3-5 years and this business is going to be
paying your mortgage and keeping your family in food for the same period so you need to get it right from the start.

By working through all the things on this checklist you should end up with a pretty good idea and feeling about the suitability of the franchise – or franchises – you’re looking to buy. The chances are that no one area of research will provide the golden nugget of information but collectively they should direct you towards a firm conclusion.

Much of what I’ve written here may appear negative but my aim has been to point out all the pitfalls rather than the highlights.

Many people make a great career from running a franchise and the model is a popular one for people wanting to get into business for themselves. Franchising as a concept does work (just look at McDonalds!) but it needs the right franchise model, the right franchisor support and, of course, a franchisee who is starting off with eyes wide open and a good understanding of what they’re buying into.

One final note –

Do not believe anything the franchisor says unless you can independently verify it yourself from other sources.

Yes, I know that I’ve already said that but I can’t emphasize it enough!

Click here for the next chapter

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