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How To Establish A Small Business Franchise Opportunity |
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Written by Myles Krueger
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Wednesday, 24 September 2008 03:33 |
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There are benefits, responsibilities, costs and risks in establishing a small business franchise opportunity. There are many important steps along the way to consider when researching a franchise business. If you complete those steps thoroughly, you can be confident on becoming a member of a growing, healthy franchise system.
by MylesKrueger
There are benefits, responsibilities, costs and risks in establishing a small business franchise opportunity. There are many important steps along the way to consider when researching a franchise business. If you complete those steps thoroughly, you can be confident on becoming a member of a growing, healthy franchise system.
Here are some major do's: do you want to be in business full-time, part-time or with your family, thoroughly investigate the company, appraise the business to determine if it is a good fit for you, deal only with well established, well-financed and successful franchisers, and ask for assistance from a lawyer and an accountant.
When the word "franchise" comes up, the first thing that usually comes to mind is a franchise in the fast food business. Today the selection of a franchise can be from a computer in your home to a stable at a farm. Therefore, the fees cannot be compared as a 'one size fits all' as they have been for years.
If you have an idea of what you would like to do, see if there is a local franchise in your area for sale. Call and make an appointment with the current owners and arrange for an interview with them in person. Ask them about their personal experiences with the company and why they are leaving.
Investigate claims about your potential earnings, both monthly and annually. Some companies claim that you'll earn a certain amount. Be suspicious of any company that does not show you in writing the earning claims they actually have made.
The Federal Trade Commission's Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give you specific information to help you make an informed decision. The seller must give you this disclosure document at least 14 business days before you commit yourself legally. This is a great safe guard.
This disclosure document includes: names, address and telephone numbers of previous purchasers who live closest to you, a fully audited financial state of the seller; background of the business's executives; cost of starting and maintaining the business and the responsibilities you and the seller will have to each other.
This very important investment will influence your life for many years to come. You should consider getting professional advice through a lawyer, an accountant or a business advisor to have a background in franchise corporations. They can help you with all documents and contracts and the money and time you spend on professional assistance and research could save you from a bad investment decision.
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