9 Questions to Ask when Buying a Franchise

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Questions to Ask when Buying a Franchise

Starting a small business can be confusing, it can be equally interesting to sort through the maze of selecting a franchise.

9 Questions to Ask Yourself If Thinking of Buying a Franchise:

  1. How long does it take for a particular franchise to break even?
  2. Do you have the savings or resources and working capital to manage the time when the business will be losing money?
  3. Are you comfortable with the idea of operating as a franchisee where you will have to abide by certain rules and structures under the franchise agreement?
  4. Do you have experience operating a business similar to the franchise you are considering?
  5. Do you have good legal counsel, accounting guidance, and other professional advisors to guide your business decision in considering the franchise?
  6. Are you comfortable executing a personal guarantee with the franchisor?
  7. Have you spoken with existing and former franchisees to get feedback and responses on their experience with the franchisor?
  8. Is the market you are considering buying the franchise in growing and looking to continue to expand?
  9. Are you ready to put in the hours?  Most new businesses require an extremely full-time commitment.
For more information on buying a franchise or franchise consulting guidance on a specific franchise transaction, contact the FMS consulting department at (800) 610-0292.