Consider Buying a Franchise

If the idea of starting a business of your own from scratch is scary, you may consider buying an existing franchise from a company that has already established a track record of success and will teach you how to use their proven methods.

Here are the Do’s and Don’ts to buying a franchise:

DOs:

1. Investigate franchise opportunities by visiting a franchise opportunity trade show or contacting a franchise agent.
2. Talk to the present owners of the franchise.
3. Consult any and all advisers you feel can help you.
4. Read thoroughly the Uniform Franchise Offering Circular (UFOC), a disclosure document where the franchiser must disclose certain specified information.
5. Even with the UFOC, make sure to ask all the questions you can.
6. Compare other franchise systems in the same field.
7. Evaluate yourself and see if franchising is really for you.
8. Know and understand all the terms of your purchasing contract.
9. Check the history and experience of the franchise’s officers and managers.
10. Research, research, research.

DON’Ts:

1. Hurry.
2. Overextend your finances.
3. Skip consulting the professionals.
4. Take anyone’s word.
5. Settle.

SOURCE: Steve Ma. Reyna, “Knowing the Do’s and Don’ts in Buying a Franchise”