Before you start looking for a franchise to buy, think about why you think you want to buy a franchise opportunity in the first place.
What benefits do you expect to receive from a franchise that are more or better than what you could gain from starting a business on your own? While federal and some state laws define what business opportunities are franchises-and that definition is very broad-there are no laws that require franchisors to provide their franchisees with anything specific. Or with anything at all.
No minimum level of assistance, no ongoing support, no marketing help, no on-site visits, not even phone calls or emails, and certainly not innovations and further development of the business model UNLESS it's in the contract!
Will you still be willing to pay royalties and operate by someone else's rules after you've been in business for a couple of years, and are comfortable that you now understand the business and what you are doing? Are you a follower? Can you play by the rules? For as long as you have the business?
Are you a risk taker? Willing to take a chance on a new concept, a new company? Do you need a mature, well proven business? How much are you willing to risk? Are you prepared to deal with the consequences of failure?
Everyone will tell you to do your homework on researching a business or franchise opportunity, but start with yourself. What is going to work for you?
Here are Five Tips on Buying a Franchise Business Opportunity
- Do your homework, don't just fall in love with the business. Be sure it is right for you and profitable enough to meet your need.
- Promises really are just as good as the paper on which they are written-this is especially true in franchising. The person you trust today may not be with the company tomorrow.
- Can you be a team player and follow direction?
- Investigate your franchisor, that means ownership, management and financial stability.
- Think about consequences. What happens if things go wrong? Maybe investing in an experienced franchise attorney is worth it.
