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Question Your Franchise Decision Making
by Brandon Todd
Deciding on a franchise may be one of the most important decisions you will make in your lifetime. Before rushing right into it out of sheer excitement, please take some time and ask yourself the basics. This franchise opportunity may potentially be your saving grace for a better future, so stop thinking of “dollar signs” and question the smart investment you are about to make. The following is a rambling list of what to consider during the due diligence process.
Q. What are you looking for in a franchisee? Q. What does a franchise cost? Q. What are the royalty and marketing fees? Q. What is included in the franchise fees? Q. How much capital is required? Q. Do you provide any financing? Q. What support do you offer for site selection? Q. What operations assistance do you offer for the opening of this franchise? Q. What on-going operations support do you offer after the opening? Q. What kind of marketing support do I get? Q. How will I get the franchise supplies I need? Q. Can I acquire the rights to multiple offices? Q. How long has this franchise been in business? Q. What are the terms of my franchise agreement? Q. Does my franchise agreement include a protected territory? Q. How quickly can I get started? Q. How long does the application process take? Q. When can I review the Uniform Franchise Offering (UFOC)? Q. Is experience in this industry required to become part of this franchise? Q. Can I sell my Franchise? Q. Can I acquire multiple units? Q. Do you offer a training program and how long is it? Q. Do you hire managers for me? Q. Do you provide insurance for your franchisees? Q. Should I buy an existing franchise instead of a new one?
Size yourself up:
Q. Do I have passion for this industry? Q. Do I have the desire to earn what I am worth? Q. Do I have good people skills? Q. Do I have a flair for creativity? Q. Am I self-motivated and disciplined? Q. Do I want to own my own business? Q. Do I want more flexibility and control with my career? Q. Do I want to be my own boss? Q. Do I want or can I work from home? Q. Do I want or will I have enough time for my family?
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