10 Questions You Should Ask Before Buying a Franchise

1. How long has the franchise been in business?
2. Is the franchise’s financial position strong? Can you see a disclosure document.
3. What are the initial start-up costs?
4. What services are offered as part of the start-up?
5. Is training of staff and management offered?
6. Does the franchisor assist in launching the business? Will they be there to guide you in the first few weeks?
7. How much will you pay monthly as a royalty and advertising fee?
8. What advertising and promotional support is offered by the franchisor?
9. Does the company have support staff that will visit your business in person?
10. Can they give you a list of franchisees that you can contact for references? Visit franchisees and ask them as many questions as possible.

Do your research and develop your own business plan

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One response to “10 Questions You Should Ask Before Buying a Franchise

  1. Did you know it's usually cheaper to buy an existing Franchise instead of getting a new one? Of course that sale is conditional to the head office doing the interview and the buyer passing the training (all at the buyer's cost).

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