6 Ways to Research a Franchise
Buying a business is a big step, and franchising is a good option. Before starting the process take the time to do research. Here are some tips to start franchise research.
Research Competitors- How many similar businesses are in the area you plan to open? Take the time to evaluate what your competition does, how they do it, and if your area is saturated. Work with the developer to understand the franchises demographics and how that relates to your purposed area of development.
Chamber of commerce- Your local Chamber provides many opportunities to network with other business owners and educational events regarding what is trending economically in your area. It is also a good resource for demographics in your area.
Local Franchise Owners - Before having a discussion with the owners, make sure you have an understanding of the business before doing so. You can do this by having conversations with the developer and other owners throughout the country. Make sure to be mindful of their time.
Work with a Franchise Consultants - To understand what a consultant can provide
Attend a Discover Day- Discovery Days are a great way to get to know the management team and experience a day in the life of the business. This will also give you an opportunity to ask any lingering questions.
Hire an Accountant and Franchise Attorney
A lawyer can help you understand your obligations under the franchise contract (FDD). An accountant can help you understand the franchisor’s financial statements, develop a business plan, assess any earnings projections and the assumptions they’re based on, and help you pick a franchise system that is best suited to your investment resources and your goals.
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