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How to Buy A Franchise


Buying a Franchise is much easier than most people realize. The hard part (that’s often more difficult and complicated), is the pre-purchase decision making stage. This is when the buyer has to enter a strategic ‘compare and contrast’ phase, sorting offerings in order of priority to determine which Franchise direct is preferable and ultimately, the winner!

In the beginning, it is very important to develop an efficient information ‘sorting strategy’ that supports the buyers strategic comparison of relevant franchise offerings. All of the most important franchise elements should be factored in, such as company benefits, training perks and most importantly, the likelihood of success (based on the current data and revenue statistics per franchise site).

 

Once a comprehensive comparison has been done on every interesting franchise opportunity, a good idea is to whittle the best options down to a shortlist. Even better is to get the list down to the top 3 best franchises. Once this has been done, it’s a great opportunity to contact your 3 top franchises and request their operational offering summaries (these are also frequently referred to as UFOCs: Uniform Franchise Offering Circulars). Within these summaries you’ll find extensive information pertinent to your potential investment.

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After an in-depth assessment of the key data, commitment expectations and understanding what the franchisee expects of the franchise owner, it’s time to talk about money. How much will it cost to get training covered? What’s the fee for insurance components? What’s the total franchise fee? All of the numbers need to be factored and it’s at this stage that meeting with an experienced business consultant is a good idea, just to get an objective view on your top 3 options, expenses and commitments.


 How to Buy A Franchise

 Research is the most important peice of the puzzle. Make sure you pick the right Franchise!


Once you’ve gained perspective from an objective professional, then comes the right time to make calls and engage former franchise and current franchise owners, for their perspective on issues, benefits and overall engagement details. It’s important to ask them the right kind of questions too, as their answers may end up helping you to decide on what path to take! Here’s a small example of a few questions you could ask to current owners: ‘What obstacles are you currently facing?’, ‘What kind of support and training do you receive?’ and for ex-owners ‘What was the reason for you leaving?’. These contextual and conversational pieces of the puzzle will help you to put a final decision together and move you a few steps closer toward signing that franchise agreement!

 

Now that you’ve put the business franchise puzzle together, you should have a very clear picture of the number 1 option for you. So congratulations on reaching the exciting and relatively easy part. Now you can finally reach out to the franchisee and confirm your intentions and investment interest. Of course, there will also be an opportunity for you to have a few pre-engagement dialogues with the franchisee representatives. This is when any potential modifications or negotiations relative to contract and technical aspects may be formally raised and managed.

 

Finally, it’s highly recommended to utilize all of the business, research, technical and commercial resources available to you during this exciting time and remember, there is no time like the present to ask any and all questions relative to the investment.

 

No matter what, just keep that old saying in mind: ‘there’s no such thing as a silly question’, because in this case it’s very helpful and very true! The more questions you ask – the better, as it will prepare you for life as a franchise owner, where the learning will keep you stimulated and the wisdom will no doubt make you a wonderful and inspiring leader.

 

Don’t forget to review the snap-shot summary below and keep it with you while you research!

 

Step-by-Step Summary on How to Buy A Franchise

  1. Collect All of The Franchise Options
  2. Compare & Contrast Franchises
  3. Get a ‘Sorting Strategy’ happening
  4. Ask for Top 3 Franchise UFOCs
  5. Get a Professional Perspective
  6. Connect with Franchise Owners
  7. Make your Final Choice
  8. Sign-up to Franchise!

We wish you luck and hey, who knows?

Maybe we will see you at The Broccoli Pizza and Pasta Family Franchise sometime!

 

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How to Invest Your Money Wisely


 

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