How to purchase a NEW franchise
There are a number of key things you should and shouldn't do when planning to purchase a franchise.
Do:
- Assess yourself to see what kind of franchise, if any, will suit you.
- Find out what franchises are available.
- Assess franchise opportunities carefully, ask questions and talk to other franchisees.
- Investigate the financial prospects for the business.
- If you'll need to raise bank finance, ask your bank if it will consider a loan for the type of franchise you're considering.
- Do your own market research into customers and competitors in your area.
- Draw up a business plan.
- Check the franchise agreement and get professional advice.
Don't:
- Take up the first opportunity before investigating alternatives.
- Allow yourself to be hurried into making a decision.
- Pay any non-refundable deposit.
- Commit yourself before you're completely satisfied.
- Assume a business will work in your area just because it works elsewhere.
- Rely on the forecasts provided by the company selling you the franchise.
- Sign any agreement without legal advice.