Great Ideas for your Small Business: Know the DOS and DON’TS of Buying a Franchise
Franchising in the united states is a $1 trillion-a-year concept. Some 600,000 franchised small business owners provide jobs for more than 8 million American workers. There is virtually no product or service that can’t be bought through a franchised business. But it’s not for everyone, and it is not a get-rich- quick scheme.
Here are some tips from the International Franchise Association in Washington, D.C.: DO:
- Talk to as many franchisees as possible.
- Talk to the franchiser; get to know key players.
- Consult any and all advisers you feel can help you.
- Ask all the questions you can. No question is too trivial.
- Compare other franchise systems in the same field.
- Evaluate yourself. Make sure you’ll be comfortable doing what the business requires.
- Read and understand the Uniform Franchise Offering Circular, and know all the terms of your contract.
- Check the history and experience of the franchise’s officers and managers.
- Research, research, research. The more you know, the better your decision is likely to be. Remember, only you can determine if owning a particular franchise is right for you.
DON’T:
- Hurry. Short-cutting your research will increase your likelihood of failure.
- Overextend your finances. Always plan for more expenses than you think you’ll have.
- Skip consulting the professionals. Skimping on fees will deprive you of critical information.
- Take anyone’s word. It’s your risk and opportunity.
- Settle. Get the business you want, not the first one that comes along.