By deciding to buy a franchise, you protect yourself from many of the risks associated with starting a business. But buying a franchise is the right decision only when you agree to the offer of a well-known player in the market, and do not flatter yourself with the benefits offered by a dubious company.
Instructions
Step 1
Find information on companies that sell franchises. These companies place ads in newspapers and magazines that are dedicated to business issues. A lot of similar information can be found on the net.
Step 2
Contact directly companies selling services or products based on a franchise. They operate in different areas of business: from computer technology to wedding accessories. Don't limit yourself to choosing a fast food franchise just because the area is strongly associated with the franchise.
Step 3
Find out the basic terms of cooperation with the franchisor. Find out more about the products or services offered for purchase. Check the availability of tutorials, operating instructions for the offered products. Be sure to ask about advertising support and sales promotion from the company that sells the franchise. Personnel training will not be superfluous either.
Step 4
Conduct an independent franchise valuation and business plan. This will reduce the risks, especially at the initial stage. Assess the market in which you are going to work. Find out how many companies are promoting products or services similar to yours. Ask friends and family about the difficulties they experienced when buying the products you offer.
Step 5
Before purchasing a franchise, contact the company's headquarters with a request to demonstrate how work is progressing in an existing branch of their network. Check out how the contract is being implemented. This is the only way to understand whether it will be profitable to purchase a franchise from this company.
Step 6
Watch out for franchisors asking too high a price and not actually providing the support you need. Also beware of those who hide insolvency at a reasonable cost.
