EVALUATE THE FRANCHISE
When you buy a franchise, you’re also purchasing your franchisor’s company, both the beauty and fun of the business but also the work, responsibilities and some of the growing pains, changes, and hiccups of the franchise, but remember nothing is ever perfect.
You can see if there are consumer complaints against a particular franchisor by doing a search on the Better Business Bureau or by making a request in writing to the FTC. Then bring your concerns to the table.
Next, what do you know about the executives who run the company? Is there any pending litigation against the franchisor that you should be aware of? How secure will your territory be? Don’t forget that you’re being marketed too when you’re examining different franchise opportunities. Therefore, franchisors aren’t always entirely upfront about the true costs of owning one of their franchises. Make sure that you do your research into this matter by thoroughly reviewing the Franchise Disclosure Document and having your lawyer review it with you.
And always – make sure there’s a viable exit strategy. The franchise lawyer can also help with this. By becoming a franchisee, you’re becoming a self-actualized businessperson, and businesspeople always have exit strategies. You never know what may happen down the line, and you may find yourself in a position where you need to get out from under your franchise sooner than expected. Before signing on the dotted line, make sure there are viable exit strategies available to you; otherwise, you could find yourself in a world of hurt.