Things to Do Before Buying a Franchise

Want to purchase a franchise? Consider these things first.

Already established business models can make franchise-buying appealing. But just because purchasing a franchise sounds like a good idea, does not always mean it is one. Things like personality conflicts and unforeseen costs can make the investment more complicated than expected.

Below are 12 things a would-be franchisee should do before committing to a particular business, according to Forbes.

  1. Conduct a personality test
  2. Study the franchising field
  3. Assess individual strengths
  4. Budget beyond minimum requirement costs
  5. Be selective with franchise consultants
  6. Be aware of franchise failure rates
  7. Research negatives of the franchise in consideration
  8. Get advice and information from other franchisees
  9. Thoroughly read the Financial Disclosure Document (FDD)
  10. Consider hiring legal or financial help
  11. Spend time working at the considered franchise first
  12. Make a pros and cons list

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