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:
- How long does it take for a particular franchise to break even?
- Do you have the savings or resources and working capital to manage the time when the business will be losing money?
- 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?
- Do you have experience operating a business similar to the franchise you are considering?
- Do you have good legal counsel, accounting guidance, and other professional advisors to guide your business decision in considering the franchise?
- Are you comfortable executing a personal guarantee with the franchisor?
- Have you spoken with existing and former franchisees to get feedback and responses on their experience with the franchisor?
- Is the market you are considering buying the franchise in growing and looking to continue to expand?
- 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.
