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