How to Narrow Your Top Choices and Buy into the Right Franchise
As you narrow down your top franchise choices and decide which one is right for you when buying a franchise, now is the time to embrace the notion of “hold that thought.”
At this point, you may be leaning toward two or three franchises for pragmatic reasons. And another two or three may have captured your imagination for reasons you cannot quite explain. That’s nothing to feel embarrassed about; buying a franchise should be one of the most exhilarating times of your life.
Topics of Discussion:
- Embark on a Self-Inventory
- Hone in on Your Preferred Franchises
- Compare Your Self-Inventory to Your Preferred List
- Take One Last Look Before Buying a Franchise
1. Just as you might have taken an “interest inventory” to narrow down your choices of a suitable degree path in college, now is the time to subject yourself to an honest interest inventory of a suitable franchise path. First, take stock of your skills, talents and interests. In particular, it’s vital to assess whether you can see yourself managing and motivating people on a regular basis. Your role in a franchise should begin to take shape.
2. A clearer picture of the franchises should take shape after you:
*Request ownership information from the franchises. You should find valuable information on the company website. Be sure to view videos and request brochures and write down any questions you might have.
*Call franchise owners. They should be happy to talk with potential franchise owners to share their experiences and give them a behind-the-scenes look at the company and how it supports franchise owners.
*Visit a few franchises. Observe the operation and ask relevant questions, even of obliging customers.
3. Once you secure a franchise disclosure document — commonly known as an FDD — the Federal Trade Commission recommends that you review it carefully for the following information:
*What is the franchisor’s background? Review the history and management team in particular.
*What is the initial franchise fee?
*What are the rules and restrictions?
*What is the reported revenue of the average franchisee?
*What type of support will you receive in the form of training, marketing, advertising and mentoring?
Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.