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Before buying a franchise, entrepreneurs need to decide on a segment, narrow down their options and then do their <a href="https://1851franchise.com/how-to-perform-due-diligence-on-a-brand-that-doesnt-have-franchisees-2375">due diligence</a> on their top picks and develop a full understanding of the franchise requirements.&nbsp;To find the right franchise, 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 <a href="https://1851franchise.com/franchisebrokerawards">franchise consultant</a> or <a href="https://1851franchise.com/2020s-top-franchise-legal-players-2713623">franchise attorney</a>. When contemplating buying into a franchise system, franchise professionals can be an essential resource as they are experts in the industry and know how to align the right concepts with the right prospects.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 <a href="https://1851franchise.com/10-must-ask-questions-about-franchise-agreements-2708306">franchise agreement</a> and <a href="https://1851franchise.com/what-is-an-fdd-2705192">Franchise Disclosure Document</a> to ensure they know what they would be getting into.&nbsp;Assessing the initial investment and financial obligations and comparing those to personal financial liability is also important. The unit economics of the franchise will be found in <a href="https://1851franchise.com/how-to-read-an-item-19-3200">Item 19</a> of the FDD, while the costs that will be associated with joining the brand will be found in <a href="https://1851franchise.com/the-most-important-items-in-an-fdd-item-7-initial-costs-2712071">Item 7</a>. Prospects should ask themselves how much money they are willing to <a href="https://1851franchise.com/different-kinds-of-loans-available-to-franchisees-2712057#people">borrow</a> and research the timeline on the return-on-investment for that specific brand.&nbsp;Another important step is to speak to those who know most about the reality of the franchise opportunity: existing franchisees. As a good rule of thumb, prospects should try to reach out to at least 10 franchisees for <a href="https://1851franchise.com/what-is-the-value-of-franchisee-validation-in-the-franchise-sales-process-2703208">validation</a>. This is a great opportunity to ask difficult questions and really dig into what day-to-day life could look like as a franchisee.Buying a franchise is a big step, and while each individual person’s process will be different based on where they are in their career and life, these are some of the most important steps to take before starting a franchising journey.

What Should I Do Before Buying a Franchise?

1851 Franchise

Entrepreneurs need to do the proper due diligence, evaluate their financial standing and seek the council of experts in the industry before signing on the dotted line.

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Lawn Doctor

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From Near-Quit to 7 Figures: Success With Lawn Doctor in Jacksonville, Florida

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Atomic Wings

Atomic Wings Debuts in Metro East With Fairview Heights Grand Opening

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Pet Wants

Pet Wants Shares Expert Tips on Cleaning Pet Gear Safely in the Dishwasher

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Griswold

Griswold in Andover, Minnesota, Connects Students and Seniors Through Pen Pal Program

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HomeTeam Inspection Service

Photo of HomeTeam Inspection Service franchisee Max Moarefdoust

Corporate Employee Turned Owner Illustrates the Power of the HomeTeam Model

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Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

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Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

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Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

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Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

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How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

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What Should I Do Before Buying a Franchise?

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