18 Questions to Ask If You’re Thinking About Buying a Franchise

Before you invest your hard-earned money in a franchise, you want to make sure that #1, it’s what you really want and #2, that you’ll be successful. According to Barry Thomsen, publisher/editor of the “Small Business Idea-Letter,” if you ask these 18 questions before you write the check, you’ll have a much better chance of seeing a return on your investment.

1. Are the products or services something you enjoy personally or have an interest in?

2. Is your franchise company a leader in its industry or at least well known?

3. Are selling prices competitive in the marketplace?

4. Is the start-up cost within your budget?

5. Do they offer a protected territory or area?

6. Do they have company-owned stores or services?

7. Are other franchisees making money? (talk to five or more)

8. Can you visit other franchise locations and observe their operations?

9. Are there reduced start-up costs and fees if you open more locations?

10. Are there any restrictions if you decide to resell?

11. Is the royalty reasonable for the industry?

12. What type of initial training do they offer?

13. Do they offer on-site training when you first open?

14. Are they constantly looking for new products and services to offer?

15. Do they offer assistance in selecting a site?

16. Is the corporate office financially stable?

17. Are there restrictions on what you can sell?

18. Do they offer help in financing?

According to Thomsen, “A franchise can give you a ready-made plan or turn-key operation which eliminates a lot of the headaches of starting on your own. You just need to be sure it’s what you really want, because once you sign the agreement, you’ll be partners for a long time.”

For more information about the “Small Business Idea-Letter,” call (877)-700-1322 or e-mail idealetter@aol.com.