There are plenty of good franchises out there…there are some that you have to consider carefully to make sure that you are not being ripped-off of your money.
Here are a few tips:
1. Do you have a business attorney/accountant lined up? He will need to not only check all the documents, but also advise you of tax matters, income options, accounting methods and/or any other legal avenue needing investigation.
2. Talk to other business owners and get their feedback on all aspects of the franchise.
3. Inquire about training, support and follow-up assistance when purchasing a franchise.
4. Have you read the UFOC? This is a mandatory requirement by the Federal Trade Commission requiring a Uniform Franchise Offering Circular be given, which offers specific information about the business.
5. Research and ask questions about not only the particular franchise you are interested in, but franchises in general.
6. If there is a fee to pay a legal or professional to view your contracts and documents, pay it. Do not overlook the most important aspect of doing business.
7. If it is a home-based business, and the overhead is low, you can pretty much be assured of a successful venture if you have done your homework and work the business.
8. Compare other franchises to see if they are competitive in the market and can provide the details to assist you in making an informed decision.
9. Know the franchise laws. A huge business, such as Cruise Planners/ American Express has been established for years. You can view the success of the business, the clientele and the owners of the industry and note the success of their franchise business. You can also note that Branding, such as American Express, tells an even bigger story about Cruise Planners…they partner with success.
These are just a few tips on purchasing a franchise. The most important person to talk to, is someone who knows the business inside and out and can address all your concerns. For instance, if you are interested in the very successful cruise-line franchise industry, Dan Hicks from the highly noted and visible, Cruise Planners/American Express industry can fill you in all aspects of the home-based franchise opportunity. In addition, he can inform you of the training offered, refer you to others who are successful in the business, and advise you on all aspects of the industry.