6 Things you need to Know before Buying a Franchise in 2019

You are spoilt for choice if you are planning to buy a franchise business now. It becomes a daunting task to choose among the numerous franchise opportunities available.

To make the right choice, there are certain things you need to focus on before buying a franchise in 2019:

01. Understand Your Goals

You need to think carefully about what you are looking for. Being a franchise owner, you should be clear on your goals.

It is important to decide if you want to go with a franchise that offers more time with your family or take on a demanding business.

02. Know Your Finances

Throughout the franchise buying process, you require investment, including the initial franchise fee, capital investment, rent/purchase licenses, and more.

It is up to you to evaluate expenses and decide how much you are willing to invest in a franchise business, and how to source funds.

03. Research on the Franchise Opportunities

It is important to research the industry of your interest. Take help from business magazines, newspapers, online portals, social media, etc.

You can leverage industry websites and portals to learn more about franchise industry trends.

04. Choose & Evaluate your Franchise Business

Once you are ready with your finances and research, go ahead and choose a few franchise opportunities of your choice.

Visit their brand websites. Evaluate the return on investment (ROI), royalty fees, training and marketing support, etc.

05. Visit Franchisors for Initial Applications & FDDs

Now you need to narrow down your selection to 1 or 2 relevant brands. The next process is to fill their application forms, which helps the franchisors in their screening process.

If you are the right person for the franchisor then do not delay in asking for a copy of the franchise disclosure document (FDD). This document will provide you with the details about the franchise opportunity that lets you take a final call.

06. Review the Franchise Agreement

When you and the franchisor have completely agreed upon the terms and conditions, then the franchisor prepares a franchise agreement, which is a formal contract. It is advisable to hire a lawyer to review the agreement before signing it.

For more insights about buying a franchise in 2019, Contact Us.