I really like this article by Adam Heitzman https://www.inc.com/adam-heitzman/5-biggest-mistakes-people-make-when-buying-a-franchise.html outlining some of the mistakes people make when considering or buying a franchise.
Interestingly, I usually start my seminars where Adam ends his article…. with the following counsel…
Franchise ownership isn’t for everyone. But for the right person, it can be a great way to get involved in creating their own corporate ladder.
What I go on to tell my audiences and individual clients is this……. If you have a great desire to do something different than work for someone else, or if you are looking for a semi-passive business investment that can turn into a full-time career in the future, you need to do the following. Define your business model…understand what the best attributes are of a business that fits you. Make a commitment to research, and then more research. Any information you need to make a good decision is available. Research includes studying the disclosure documents, understanding the franchisor’s business model and plan and talking to existing franchise owners about their success and their relationship with the franchisor. My clients take 12 weeks to thoroughly research franchise alternatives before making a decision.
Franchise ownership isn’t for everyone, but it can be a great way to get into business for the right indivudual that is willing to follow a blueprint and business process while adding their own skills and effort toward growing a business.
Mike Hall is the owner of FranNet Carolina, a franchise consulting company that matches clients to business opportunities