Thinking Franchise? Start Here First
Franchising is big business. Like any growing industry it can attract players that really have no proven model [read: no good reason to be selling a franchise in the first place].
That is not to say that buying a franchise is a bad idea, just make sure you know the truth before you lay out your life savings. The most successful franchises are successful because they have a proven business model, provide excellent training, and support.
I spotted a great article at Forbes titled "Ten Good Reasons Not To Buy A Franchise" and it is worth a read since it expands on the following ten points:
1. Questionable profitability.
2. High startup costs.
3. Encroachment.
4. Lack of legal recourse.
5. Limited independence.
6. Royalty payments.
7. Inflated pricing on supplies.
8. Restrictions on post-term competition.
9. Advertising fees.
10. Unfair termination.
Pay particular attention to newer franchises. How long have they been selling franchises? Ask for their prospectus and read it carefully. Call previous franchise owners and ask questions – you will be amazed how much they will tell you.
All you have to do is ask.
March 11th, 2008 at 10:42 am
I saw your posting and want to share with you how my client, Wireless Toyz is a good example where franchisees with passion for the business are typically more successful. Wireless Toyz was founded on the realization that even knowledgeable consumers of wireless products and service are overwhelmed by rapid changes in technology, confused by too many choices and intimidated by ‘techie experts.’ A successful Wireless Toyz franchisee actually looks forward to every frustrated customer and unique problem that walks in the door. Patience is a plus, but what really characterizes their consistent sales leaders is a passion for solving problems, one customer at a time! Learn more about how to choose a franchise or determine whether a franchise business is right for you by contacting Richard Simtob at 866-2FRANCHISE or email him at franchise@wirelesstoyz.com. You may also visit http://www.wirelesstoyz.com/franchise for more information.
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