Buying a franchise can be risky and if you choose the wrong franchise you could end up going out of business and losing all of your up-front investment. If you used bank funding, you’ll still owe the bank even if you have given up the franchise!
You could ruin your credit rating and you’d still owe money to your suppliers and maybe even a landlord.
The nightmare just described above can be easily avoided if you know what to watch out for when you’re investigating franchises.
But, if you’ve never looked into franchise ownership, (beyond web-surfing and brochure-gathering) it’s going to be hard for you to know if you’re on the right path or not.
The right path, which really means choosing the right franchise opportunity for you-followed by in-depth research, can allow you to come out a winner.
This is the time to invest a bit of money in your future and not penny pinch. Hire a franchise solicitor. Make sure you use one who’s familiar with franchise agreements.
Beware of some of the hype coming from franchise sales departments. Some of it also comes from franchise industry associations. The hype often suggestions that becoming a franchisee is going to be really easy, because everything is all set up for you. Statements such as, “Turnkey Business” and “Businesses in a Box” are used to make the idea of owning your own franchise really attractive.
Franchising can be a great way to get you in to business, for many becoming a franchisee can release the bonds of corporate life. It can lead to freedom and wealth.