Many entrepreneurs build their businesses up from scratch, while others have their sights set on a franchise. Going the latter route allows for the opportunity to buy into a business that’s already established, and comes with a host of support as far as business strategies, marketing, and other factors are concerned.
If you’re planning on buying a franchise, consider the following first.
Do Your Research
The first thing you should do is study the franchise business you plan on getting into. Find out things like litigation and bankruptcy history, in addition to initial fees, investment, and obligations. Don’t base your decision on what you see in a gorgeous franchise brochure. Ask existing franchisees what their days are like, including what they do as owners.
Consider the Location
Regardless of whether a business is a franchise or not, location is key. One of the hardest decisions to make is to select a location for the new business. Plenty of franchisors will work with you to choose the ideal location for your business to ensure optimal profitability. But at the end of the day, the decision is yours. Make sure you put in the time and effort to study the odds of success at a particular location before you build.
Consult With a Specialist
Tax rules and contracts regarding franchises can be pretty complex, which is why you should find local franchise attorney, preferably one who specializes in franchise law. He or she will then look over your franchise agreement documents and determine if there are any red flags.
