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:
- Investigate franchise opportunities by visiting a franchise opportunity trade show or contacting a franchise agent.
- Talk to the present owners of the franchise.
- Consult any and all advisers you feel can help you.
- Read thoroughly the Uniform Franchise Offering Circular (UFOC), a disclosure document where the franchiser must disclose certain specified information.
- Even with the UFOC, make sure to ask all the questions you can.
- Compare other franchise systems in the same field.
- Evaluate yourself and see if franchising is really for you.
- Know and understand all the terms of your purchasing contract.
- Check the history and experience of the franchise’s officers and managers.
- Research, research, research.
- Overextend your finances.
- Skip consulting the professionals.
- Take anyone’s word.
SOURCE: Steve Ma. Reyna, “Knowing the Do’s and Don’ts in Buying a Franchise”