Buying a franchise can be risky and if you choose the wrong franchise you could end up going out of business and losing all of your up-front investment. If you used bank funding, you'll still owe the bank even if you have given up the franchise!
You could ruin your credit rating and youd still owe money to your suppliers and maybe even a landlord.
It Doesnt Have to be That Way
The nightmare just described above can be easily avoided if you know what to watch out for when youre investigating franchises.
But, if youve never looked into franchise ownership, (beyond web-surfing and brochure-gathering) its going to be hard for you to know if youre on the right path or not.
The right path, which really means choosing the right franchise opportunity for you-followed by in-depth research, can allow you to come out a winner.
This is the time to invest a bit of money in your future and not penny pinch. Hire a franchise solicitor. Make sure you use one whos familiar with franchise agreements.
Beware of some of the hype coming from franchise sales departments. Some of it also comes from franchise industry associations. The hype often suggestions that becoming a franchisee is going to be really easy, because everything is all set up for you. Statements such as, "Turnkey Business" and "Businesses in a Box" are used to make the idea of owning your own franchise really attractive.
Franchising can be a great way to get you in to business, for many becoming a franchisee can release the bonds of corporate life. It can lead to freedom and wealth.
You Must Remember:
It is very rare that a franchise will provide instant income
Its never easy being an business Owner of any kind
Nothing is ever really totally, "Turnkey"
As we cannot be experts in every relevant subject, we would love to receive 'guest' articles that may be of interest to anyone running their own business or thinking of doing so. ADD YOUR ARTICLE