Time Saving Tips for Franchise Shoppers
Time is a precious commodity these days and although buying a franchise is a time consuming process, there are ways to cut to the chase. Of course you should do your due diligence, but first make sure you’re focused on viable choices. Here are some tips to quickly identify the best franchise opportunities for you so no time is wasted.
- Know what you want. Before you even begin shopping around, clarify what you want in a franchise business. Make a checklist of the characteristics you’re looking for. Use your checklist to quickly weed out franchises that don’t fit the bill.
- Know your limits. Have your accountant help you determine how much you can invest. Then look in the FDD/UFOC to find the amount of net worth and liquidity that's required by the franchise. Don’t waste time investigating a franchise you can't afford.
- Look for open territory.
Ask the franchisor if there are opportunities available in the area where you
want to locate your business. If not, look elsewhere.
- Review Item 3 in the FDD/UFOC. That’s where the franchisor is required to disclose any relevant litigation history. It will give you clues about the organization’s relationships with its franchisees.
- Don’t bet on bad odds.
Check the franchisor’s failure rate. You’ll find it in Item 20 in the
FDD/UFOC.
If the track record doesn’t look so hot, it’s probably not. Move on.
- Have the right stuff.
A good franchisor will tell you what characteristics and skills they expect
from franchisees. If you don’t measure up, you’re wasting your time and
theirs.
- Get the inside scoop.
Find out if a franchise is a good match for you by talking to the company’s
existing franchisees. Get on the phone and start asking questions. You’ll
quickly get a sense of what it would really be like to become a franchisee in
this system.
To learn more about franchise opportunities and business opportunities, visit us at FranchiseHelp
Steps to improve the franchisee's profitability
Topics to be covered in this strategic audit should include at a minimum these ten (10) items:
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