Investing in a franchise is not a quick dash work. There are lots of anxieties and pressure. Here is a checklist that will help you determine if you’ve done everything you need to do before you invest.
A checklist that will help you lower your risk.
- Have you learned all you can about the franchise concept?
- Do you feel that all of your questions were answered by corporate?
- Did you get enough insights from the franchisees?
- Did you attend a in-person or virtual Discovery Day at franchise headquarters?
- Did your Discovery Day provide you with enough information on the company, its culture, and its support structure? Do you trust the executives?
- Have you looked at a couple of different financing alternatives?
- Did you seek out and meet with a franchise attorney?
- Do you have money in place to live on* (household expenses) for 6-12 months-during the lean times of your franchise business start-up period?
- Have you thought about a worst-case scenario? What if your business fails? How much money will you lose? Can you recover?
- Are you ready to put in the hours necessary to be successful?
Have a franchise attorney to help you look over the documents so you have a complete understanding of the terms of the agreement, including what the franchisor is responsible for and what you are-as a franchisee. Plus, do you really want to pour over pages and pages of legal terms, some of which only a lawyer can understand?