Franchise Buying Tips: Purchase Without Passion
Franchise Buying Tips: Purchase Without Passion
Yet that is exactly what most franchisees do. It's good to be enthusiastic about your future business plans. It's bad to fall in love with the deal and let your emotions take the lead. Think that won't happen to you? If you talk to a hundred franchisees you will find that few knew exactly what they were getting into. Most are sensible people with plenty of information who selectively twisted the facts to support an emotional decision.
Give your emotions a cold shower and use this list of safeguards to help you cut through the hype and make an objective decision:
1. Do the math – Have your accountant make sure the figures and projections add up.
2. Get professional help – Invest in an experienced franchise attorney and / or franchise consultant. Avoid sharing your plans with friends, relatives, and other ‘yes’ people who don’t understand the risks involved.
3. Chill out - Be patient and wait for the right opportunity. If you are pressured to make a quick decision, walk away.
4. Leave your checkbook at home – You’re most vulnerable to an emotional appeal at that first meeting with the franchisor. Never hand over money before you’ve done your due diligence.
5. Be pessimistic – Take off the rose-colored glasses and run a financial model that cuts the sales projections in half, doubles the expenses, and triples the length of time until you expect to be profitable.
6. Have an exit strategy – Like a pre-nup, it seems counterintuitive. But you need to know you won’t be stuck if you make the wrong choice.
7. There are other fish in the sea – Before you fall in love with the first franchise you see, get information packages from all the other franchisors in the industry and make an objective comparison.
8. Beyond the honeymoon – Sure, you’re excited now, but can you really see yourself doing this 20 years from now?
9. Buy a proven system or one where the upside is huge Be careful with a franchise with only one unit or a very short business history. Don’t be tempted by an invitation to “get in on the ground floor”... unless the business concept really makes sense.
Franchise Buying Tips Purchase Without Passion - To learn more about this author, visit Mary Tomzack's Website.
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Pop quiz: what's the number one rule of buying a franchise? If you answered: meet with the franchisor, go with a popular brand, or read the UFOC - you're wrong. The first rule of buying a franchise is this: Do Not Buy On Emotion.
Yet that is exactly what most franchisees do. It's good to be enthusiastic about your future business plans. It's bad to fall in love with the deal and let your emotions take the lead. Think that won't happen to you? If you talk to a hundred franchisees you will find that few knew exactly what they were getting into. Most are sensible people with plenty of information who selectively twisted the facts to support an emotional decision.
Give your emotions a cold shower and use this list of safeguards to help you cut through the hype and make an objective decision:
1. Do the math – Have your accountant make sure the figures and projections add up.
2. Get professional help – Invest in an experienced franchise attorney and / or franchise consultant. Avoid sharing your plans with friends, relatives, and other ‘yes’ people who don’t understand the risks involved.
3. Chill out - Be patient and wait for the right opportunity. If you are pressured to make a quick decision, walk away.
4. Leave your checkbook at home – You’re most vulnerable to an emotional appeal at that first meeting with the franchisor. Never hand over money before you’ve done your due diligence.
5. Be pessimistic – Take off the rose-colored glasses and run a financial model that cuts the sales projections in half, doubles the expenses, and triples the length of time until you expect to be profitable.
6. Have an exit strategy – Like a pre-nup, it seems counterintuitive. But you need to know you won’t be stuck if you make the wrong choice.
7. There are other fish in the sea – Before you fall in love with the first franchise you see, get information packages from all the other franchisors in the industry and make an objective comparison.
8. Beyond the honeymoon – Sure, you’re excited now, but can you really see yourself doing this 20 years from now?
9. Buy a proven system or one where the upside is huge Be careful with a franchise with only one unit or a very short business history. Don’t be tempted by an invitation to “get in on the ground floor”... unless the business concept really makes sense.
Franchise Buying Tips Purchase Without Passion - To learn more about this author, visit Mary Tomzack's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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