Growth Club
1851 Growth Club
What Questions Should You Ask Before Buying a Franchise?
No business opportunity should ever be rushed into, and prospective franchisees need to determine whether the concept is a good fit for their personal, financial and professional goals before signing on the dotted line.
Before buying a franchise, prospective franchise owners should ask several questions, including:
- Is this brand a good fit for their personality?
- Will the franchisor support them?
- Can they afford the financial component of the business?
- Is there a demand for the product in their local market?
- Can they follow the system in place?
To answer some of these questions, prospects should outline their growth goals, financial capacity, skill set and ideal ownership environment and then look for industries and specific concepts that would be a strong fit. Through this first step, prospects need to make sure to seek out the help of a qualified franchise consultant or franchise attorney. Once prospects have decided on a potential concept, the next step should be to reach out to the leadership team for more information. From there, they should carefully read the franchise agreement and Franchise Disclosure Document to ensure they know what they would be getting into.
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