Franchise Purchase Or Not?

By: Nancy Adler - Nancy Adler is an Author, Inspired Coach and Mentor, and Business Owner in the arenas of Personal Development and Business Development.

 

Due diligence is important when buying any business. A Franchise is certainly no different. The research required falls into three categories. First, what does one really want in a business and the independent study required in determining that. Second, it is important to research the Franchise itself. Third, it is vital to meet with other Franchisees currently in the business.

One of the first considerations is to look at what you are passionate about and what you like to do. That accomplishes two things. It drives the business. And having a love for what one does drives the owner. When the business and the owner are operating as one, it is a powerful combination.

A Franchise is required to disclose certain information about itself. The total cost of the franchise and financing options available through the franchise is an important consideration. Training offered by the Franchise to the franchisee during start up and ongoing is valuable to look at. Review of the locations available and length of time to build at get your business started is an important consideration. The Franchisor typically has location and demographic studies available. Independent research of locations and considering willingness to commute to the location is a key consideration.

The next step is to meet with more than one of the Franchisees currently operating in the Franchise. Going to the location and meeting personally with the Franchisee is valuable. Look at the location and determine if you like the look and feel. Ask the Franchisee if their start-up and ongoing training has been sufficient. Discuss if the Franchisor aides in advertising and marketing efforts. Determining how much freedom the Franchisee has in selecting advertising, product line, etc. Ask how many hours the Franchisee spends in their business. And, of course, confirm with them what their startup costs were and the length of time for them to see return on their investment.

Once the due diligence is complete, it is very important to make a decision quickly. Look and the advantages and disadvantages and the weight of each, and then make a decision.

Nancy transforms lives worldwide with her Gambling On Life message. For a FREE copy of Nancy´s latest e book I Am Betting On You - go to http://www.gamblingonlife.com.