Things To Watch Out For - Franchising

Franchise Ideas

• Always read the contract and disclosure documents before signing with a franchise.
   
• Hire a qualified lawyer or accountant to review the financial health of your franchise organization, have them carefully go over the disclosure documents.
   
• By law, a franchise must give you the disclosure documents at your first face to face meeting.
   
•  There is a required 10 day waiting period before signing a franchise agreement, do not give into any pressure from the sales staff to sign the document. 
   
• Make sure the franchisor is properly staffed.  The last thing you want is to find out that there isn't enough help to go around. 
   
• Make sure the company has a track record with its own stores.  That their stores are profitable, and make up a significant portion of their revenue stream. 
   
• No one can guarantee you an income, so don't listen to anyone that can guarantee you a certain amount of profit.  Any projections that are made must be based upon what the franchisor is making in the company owned stores.
   
• Make sure the manual for the franchise is thorough.  You are paying for their concept, so they better have a manual that spells everything out for you. 
   
• Do your research about them, find out what other people in the industry think about that franchise.  Don't just accept the brochures as fact.