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Helpful Tips for Buying a Franchise

Guest post by: Sarah Snyder

Article Overview: If you're looking to buy a franchise, here is some good advice on where to begin.

Helpful Tips for Buying a Franchise

With the uncertain economy, owning a franchise might be the easiest decision for people looking to open their own business because everything from the product to the marketing is already in a successful business model. This means that it is usually a lower risk than starting from scratch. If you have already chosen a franchise industry and/or brand that you would like to get more information about, here are a few helpful tips:

1.Talk to an experienced franchisee. Seeing how someone else runs the business will allow you to discover what you would do similarly or differently. The franchise owner might also offer helpful insight and help you avoid stumbling blocks that he/she encountered.

2.Visit the franchise that you would like to buy. Assess the location, the maintenance, and the employees (if any). Would you handle any of this differently? If it is a restaurant, check for cleanliness, happiness of employees, location, customer loyalty and general volume. If you are able, ask customers what they think of the establishment and what qualities you can emulate when you open your store.

3.Read the Franchise Disclosure Document very carefully. Research the history of the franchise, its executives and the reputation of the brand. Request a contract and get a list of franchisees that you might be able to speak with.

If you're not sure where to start, or not even sure what options exist for you, you can try looking online at sites like Franchise Clique. Sites like these are designed to give you all the information you need to make an informed decision about your new business opportunity.

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Article Tags: business opportunities, franchises, franchises for sale



Related Forum Posts
Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.


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