The process of buying a franchise can be very confusing and quite overwhelming. If you are a first-time business owner or first-time entrepreneur, you might not know how to buy a franchise. What this article will do for you is give you 4 rock-solid tips on how to buy a franchise.
For most entrepreneurs, the natural thought process is to just find a franchise that they are passionate about. I think that's a great idea however, if you buy a franchise solely on what you are passionate about you run the risk of making a critical mistake in buying the right franchise. These are 4 tips on how to buy a franchise right.
1. Get a reality check - Before you do anything and sign on the dotted line, it's important to take a step back and just get a clear understanding of exactly where you are right now with your financial situation. You want to make sure you know exactly how much money you had to invest and you want to know how much time you plan to spend in your business. Far too often rookie franchise owners make the mistake of thinking they are better off financially than they really are. In this case, it's wise to not mix business with emotions.
2. Understand the FDD - The Franchise Disclosure Document, otherwise known as the FDD, will tell you exactly everything you need to know about the franchise you are considering to buy. The FDD will outline exactly what the franchise company is responsible for and exactly what you as the franchise owner are responsible for. Make sure you understand these very important points. Also, the FDD will identify any former and current litigation against the franchise company. You want to know this information as you evaluate the strength and the character of the franchise. You also have a 14 day window to dissect the entire FDD so use this time wisely to conduct your due diligence.
3. Consult with franchise experts - During your 14 day "cooling off" period, is highly recommended to consult with franchise experts. They exist for a reason which is for your benefit. you definitely want to consult with a franchise attorney to see if owning a franchise is right for you. Next, make sure you consult with a franchise accountant so you completely understand all the tax and legal advantages and disadvantages of owning a franchise. Spending time and money now with these professionals will ultimately save you high attorney costs and costly litigation fees in the future event of any possible litigation.
4. Alignment your current goals and values - After you have completed the first three steps, now it's time to tie it all together and to choose a franchise that is in alignment with your values and goals. If you can also choose a franchise that you're passionate about, even better. So if your dream is to spend more time with your family on nights and weekends, do not choose a franchise that requires you to physically be there on nights and weekends. Also, if your goal is to be home every night, don't choose a franchise with extensive travel requirements.
By: Gerek Allen
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By the way, do you want to learn more about franchising so you can make informed decisions about finding the right franchise? If so, download my free guide: The Franchising Insiders Report Do you want to learn about the hottest franchises today that has NO territory restrictions, NO royalty fees, NO minimum net worth required that's home based on the Internet? If so, I suggest you check out: BizziBiz Franchise
Friday, March 25, 2011
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