Thinking It Through 

At this point, you’ve meticulously researched the franchise, you’ve assessed its reliability, you’ve interviewed franchisees and franchisors, and your head is spinning. 

Before you commit yourself to paper, it’s time to take a step back and take one final, long, clear look at the franchise, considering all of the above topics as well as a few others. This checklist should help you make your final decision on which franchise to purchase: 

·  Does the franchise stack up? Does its advertising ring true, and do you get a positive sense of the franchisor and the company? 

·  How successful is the franchise? 

·  How successful are other franchisees? 

·  Does the franchise meet the requirements you set out for your investment? 

·  Will this franchise require you to learn many new skills? 

·  Will this franchise involve a lot of work you don’t enjoy/ activities you dislike? 

·  How much money do you need? Is it a reasonable amount? 

·  How long will it take to turn a profit? 

·  Can you fund yourself until your franchise becomes profitable? 

·  Is the franchise agreement ethical and fair? 

·  Is the training and support the franchisor provides reasonable? 

·  Are you satisfied with the operations manual? 

·  Do you understand the terms of your territory? 

Two Final Questions 

Before you hurry off to sign your agreement, there are two final and essential questions you should ask yourself, questions important enough to deserve their own section rather than a checklist. They are as follows: 

1. Could I start this business myself? 

Is there a good reason to purchase this business as a franchise? Good reasons usually include: 

·  A recognizable trademark/ brand name

·  A superb product not easily reproduced

·  A unique and/or copyrighted product

·  A service trading under a name people trust

·  A detailed, experienced business plan far superior to any you could come up with on your own 

Any of these are excellent reasons to invest in a franchise. On the other hand, if you’re dealing with an un copyrighted, somewhat generic product, a fairly unknown franchise name, and a business plan you could easily reproduce, why on earth would you pay a franchise fee and royalties? If you really think this franchise would be a huge success in your area, withdraw from negotiations and start a similar business of your own. 

2. Why SHOULD I buy this franchise? 

When considering the franchise, you’ve probably focused on negatives -- looking for warning signs and signals you shouldn’t invest in the franchise. This is entirely reasonable and precisely what you should be doing. Now, though, it’s time to take that a step further and ask, why should I buy the franchise? An absence of reasons against the purchase isn’t the same as a list of reasons for it. If the franchise is above-board, solid, and trustworthy, but you can’t think of another reason why you should invest, it may not be the franchise for you. 

Most importantly of all, take your time with this decision. Purchasing a franchise is a serious investment, and you owe it to yourself and those who rely on you to think the decision through carefully. There are many franchises out there: hold out for the one that’s right for you!