Questions to ask when buying a franchise
You have decided to buy a franchise, but you do not know which one is ideal for you. While there are many attractive business opportunities, it’s important to thoroughly investigate any business you want to buy before signing an agreement.
Questions to Ask
- Has the franchise proved itself?
- How does it compare to its competitors?
- What is his business plan and what is his business model?
- How many franchises does it have among its members and what is their average income?
- Are advertising budgets and other similar items covered by all franchisees?
- What kind of presence does it have on social media?
- Is the technology refreshed?
Consider the business context
Examine factors such as demographics and the economy, and how they impact franchising.
- What kind of competition exists in the franchise business?
- Is there a company that holds a majority share of the market?
- Are there barriers to market access (high start-up costs to purchase equipment or inventory)?
What Does the Franchisor Offer?
Find out if you will get help with site selection and training. Will there be sustained support? How will system improvements be addressed? Will there be networking opportunities with other franchise owners and ongoing support?
The franchise agreement or contract must contain all the restrictions imposed on you as a franchise. If you own a business or a beginner franchise, it is likely that you will need more support in your early days to get things started. Try to find resources on best practices and learning opportunities. Whenever possible, talk to other business owners, chambers of commerce and local associations.
As with any acquisition, it will be wise and the right step to consult a lawyer and an accountant. A credible franchise lawyer NYC has the expertise to help you plan and purchase a franchise.
A franchise is a big investment both in resources and in time; you must carefully consider your options to make the best possible decision for you and your family