What to look out when buying a franchise?

Are you thinking of buying a franchise? What are some of the things you should look out for when buying a franchise? This checklist may help you in making your decision.

1. How long has the franchise been operating?
2. How many outlets are in operation? How many have closed and why?
3. Are the present outlets successful?
4. Does the franchise have a good name with its customers and operators?
5. Will this type of business be successful in your area?
6. Is there a viable market in your area?
7. What is the competition i your area?
9. Is it keeping pace with changes with the market?
10. What is the financial position of the franchiser? Obtain a copy of the audits accounts.
11. Will the franchiser allow you to take up references on him?
12. What is the initial payment - what does it entitle you to?
13. What will your liability be for the payment of royalties?
14. On what conditions can/will the franchise be terminated?
15. What will the franchiser provide?
16. Are there minimum sales figures to be met?

Buying a franchise requires huge capital. Make your decision wisely. A franchise should be a very low risk business to manage because it is a proven system with proven results.

You are buying the successful business system that should give you positive result. The question is how fast to get back your investment.

It does not matter whether you are buying a franchise, buying an existing business or starting from scratch, you got to have passion in what you are doing.

Without passion in your business, you will definitely feel miserable. In that case, it will be better off working for someone else.

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