Buying a franchise Make money or get scammed?

Let’s face it, many of the good money-making opportunities from franchises have long been exploited. But do you still want a franchise? What and where do you look? In my opinion, what is new, what is fashionable, what is the latest and greatest. Is it a passing fad, does it have the ability to grow, who is behind it?

First you need to find what interests you. Remember that you will spend more time running your own business than you do at home. So it better be something you like and be affordable. Do not put the fortune of your life, your home, your family at risk for a franchise. Don’t roll the dice and risk everything. Be sure to leave yourself in a reverse position.

Once you select a franchise, do your homework. Start with franchisees who have stores for sale. This is done for two reasons, first, you can get a better deal by buying an existing store than a new one. Also, you want to know why they are dating. The number one reason is that they generally don’t make it. They will tell you all the problems with the franchise, some are true, some are not. The more franchisees you talk to who are selling, the better questions you will develop if you decide to approach this franchisee for a new location.

When you’ve finished your data-gathering quest, focus on the main people who run this franchise. How long has the CEO, president, and chief operating officer been with this company? Has there been a constant rotation at the top? If so, it is not a good sign. Has the business moved to different states multiple times? This is usually a sign of problems with that condition, but it is not good either.

Support is a huge and important topic. What type of training will you need and for how long? Do you also get help when you open the store? Do they have a good marketing system and are they channeling enough money to market the concept? Strong support or the lack of it tells you a lot about a company.

The growth of new stores is a constant 10% or not? Every good concept must have some positive growth. If everyone is selling their stores, that is not a good sign either.

What about the fees? What are these people charging, is it high or low? What is your purchase and does it make sense? These are just a few ideas of what to look for in your search for a franchise. As you can see, don’t make an uninformed decision. Do your home work and dig into this with a good knowledge base. Good luck