Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

Six “Must Haves” for Buying a Franchise



Free PDF Download
FAQ's for Starting a Franchise - By Tom Parsley

Name: Email:


We all know that buying a franchise is a great way to start a new business. Yes it’s true that the initial cost of a franchise is generally more than any non-franchised new business. It makes sense that a franchisor would need to be rewarded (both initially and on an ongoing basis) for their training, assistance, consultation, and guidance. And, remember, the franchisor is allowing you to use their proven business model for your own personal gain.

But generally, in the long run a franchise can be much less costly to start and grow than a non-franchised business due to operating efficiencies, defined processes, and the advertising clout that the franchise name carries. Furthermore, many studies have shown that the success rate of a new franchise five years down the road will far exceed that of any new non-franchised business.

So even though franchises are a great way to start a new business, there is still that level of uncertainty that hovers over any new business venture. Is it really worth taking the risk?

Yes – if you have the following six characteristics:

1) Time. If you thought you were working a lot of hours at your regular 40 hour per week job, be prepared to commit a tremendous amount of time to your new venture.
2) Energy. Not only will you have to commit the time necessary, your energy level will need to be at peak level all day. You will be busy, and you will need to set an example for others. Can you do it?
3) Resources. You will need to surround yourself with good quality people. Management, staff, accountants, attorneys, vendors, suppliers, human resources, etc.
4) Skills. Do you really know what you are doing? Is your new franchise relative to your prior work experience? Do you know the industry inside and out?
5) Capital. Do you have the necessary capital required by the franchisor to pay the franchise fee, purchase assets, and provide sufficient working capital?
6) Desire. Is this really what you want to do? This is a financial but more importantly a life changing decision. It is not a decision where you can easily change your mind once you get started. Most likely it is a decision that will affect your life 10, 15, or 20 years down the road. Talk to others around you; your spouse, your kids, your friends. Make sure everyone is on board. Do you have the passion?

If you want to buy a franchise, consider the six points above. If you can pass the test, then you will likely succeed. Good luck!


Related Articles

  Why People Buy
  Buying A Franchise
  Franchising with all its Success
  Things to Watch Out for When Buying a Franchise
  Reselling Your Franchise
  Why Use a Franchise Consultant?
  Multi-Brand Franchising May be Declining
  What To Look For When Buying A Franchise
  Seven Questions to Ask when Starting a Franchise
  How to Purchase a Franchise that is Right for You
  How To Evaluate A Franchise Opportunity
  Buying a franchise during recession
  This is the best time to invest in yourself and buy a business
  Business Franchise
  Buy a Franchise or Get a Job?
  How to Buy a Business Opportunity
  How to Finance Your Franchise Business Opportunity
  Do You Need Experience to Own a Franchise?
  How to Avoid a Franchise Scam
  Low Cost Franchises Offer Way to Own Your Own Business

Home > Starting-A-Business > Tom Parsley > Six Must Haves for Buying a Franchise >

Free PDF Download
FAQ's for Starting a Franchise - By Tom Parsley

Name: Email:

About the Author: Tom Parsley

RSS for Tom's articles - Visit Tom's website
The Business Market is an online business-for-sale marketplace. If you are looking to buy a business, franchise or opportunity, you can search our database for free to find the perfect business to buy. Or if you are looking to sell a business, franchise or opportunity, you can list it for sale on The Business Market risk-free. There are no setup fees, no monthly fees, and you only pay a small fee (less than a dollar) for each unique buyer that views your listing.
Click here to visit Tom's website.
Dashed Line

More from Tom Parsley
Do You Need Experience to Own a Franchise
Own a Pet Care Franchise
Lodging Franchise Opportunity
BizOps I Was Scammed Or Not
Is Due Diligence Important when Buying a Business

Related Forum Posts

Re: Enticing Franchises - Top 9 List Re: Enticing Franchises - Top 9 List
Re: Info for would be franchisers... Re: Info for would be franchisers...
how much for a franchise fee? how much for a franchise fee?
Re: Franchise Surveys Re: Franchise Surveys
Re: Info for would be franchisers... Re: Info for would be franchisers...

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Expert



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

How to Start Your Own Handyman Business

Bad Economy? Now is the Time to Buy a Business

HOW DO YOU MEASURE THE VALUE YOU ADD?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.