Archive for July, 2011
Questions You Should Ask Before Closing a Franchise Sale
Deciding to buy a franchise can be an exciting time, with visions of profits and independence dancing in your head. However, before you get too far into the purchasing process, there are several key questions to ask yourself before you make your move. Here’s the rundown
Finances
Tags: business fundamentals, business venture, continual flow, dancing in your head, detective work, enough money, franchisees, owning a franchise, positive attitude, psychological stressRelated posts
Questions to Ask Before Investing in Franchise Companies
So you’re thinking about purchasing a franchise, but don’t know how to get started. Here are several questions to ask when evaluating potential investments.
1. What does the FDD state The first thing to do when evaluating potential franchises is to hire a franchise lawyer to evaluate the Franchise Disclosure Document. The FDD contains important information on how the business is run, its legal history, and what the expectations will be for you as a franchisee. Your lawyer will be able to point out any problematic areas in the document, and help you evaluate whether it looks like a promising investment or not.
2. How many other franchisees are there You will want to find out how many other franchisees are already established, and whether any of them will be located near your new business. Although this can be an indicator of how successful the organization is, you will also want to know the failure rate for new franchisees.
Tags: disclosure document, failure rate, franchise companies, franchise disclosure, franchise lawyer, franchise owners, initial costs, problematic areas, qualified accountant, train employeesRelated posts