This is the last chapter in our Buying a Franchise series.
A quality franchisor will be willing to answer all your questions and provide you with enough information on which you can make a fully informed decision.
Don’t fail to ask simply because you think the question is stupid – ask it anyway. You must be comfortable with every aspect of the business, so ask, ask, ask and keep on asking until you are satisfied.
Only after you have completed all these steps should you contemplate signing a Franchise Agreement.
So, in summary:
- Set your limits – know how much you can comfortably afford
- Make sure the franchise meets your criteria
- Ask the right questions – use key questions to shortlist three or four potential franchises
- Make your application – complete it as thoroughly and accurately as you can
- Talk to current franchisees – they are an excellent source of information about the franchisor and the business
- Do you own due diligence – err on the conservative side and use an experienced accountant
- Establish finance – evaluate the various banks with whom the franchisor is accredited
- Use a lawyer with extensive franchise experience – only a specialist should review your legal documentation and advise you
- Question – ask all the questions you want until you are satisfied you understand everything.
Only after completing these steps should you contemplate signing any legal documents that bind you in any way and commits you to investing your hard earned money. It’s your responsibility to understand the business and make a fully informed decision.
Understand the franchisor is not responsible for your success or failure. That obligation rests with you as the proprietor of your own franchise. It will be your job as a franchisee to ensure your franchise is profitable. If you cannot accept that responsibility you are not yet ready to make the transition to being your own boss!
We hope that now you’ve finished this series you’ll feel more comfortable during the process of joining a franchising business as a Franchisee. If you have any questions or concerns, please get in touch with us.