Franchise Basics

So you’ve decided to buy a franchise – congratulations! Now on to the daunting task of deciding which one is right for you.

The first step in the franchise purchasing process is to assess your equity. How much are you worth? It is a hard question to ask yourself, but it needs to be done in order for you to find out where you fall in terms of franchise options. Write down your investment resources: liquid, equity in a home or boat that can be borrowed against, savings, piggy banks, etc. Maybe you have an uncle or cousin who struck it big and promised to help you out if you ever wanted to start your own business. If so, call them. You will use all of the above to invest.

Now that you know where you stand financially you need to figure out what type of franchise you are interested in. Answer some basic questions about yourself such as what types of businesses excite you? What types of products can you see yourself being surrounded by on a daily basis for the next ten years (at least)? What types of businesses is your community lacking? Are you looking for a niche franchise or one with more broad appeal? Will you continue to work during the first year or so of your franchise? List all of your business related strengths and weaknesses.

Once you have completed the personal and financial assessment you will have a better idea of where you stand in the franchise world.

Now it is time to do your research. Start by investigating various industries that spark an interest then narrow them down to the few that will have major growth potential within your community. Contact those companies directly for franchising information. But don’t stop there. Search the internet for any news articles pertaining to those franchises and the particular industry you are getting involved in.

It is also helpful to find out specific franchise related law within your state and to search the Federal Trade Commission’s website as well (www.ftc.gov).

-- Franchise "Info Creature"