Dos and don’ts to consider when buying a Franchise
If you have already made up your mind about buying a franchise then the following are dos and don’ts that should be kept in mind when buying a franchise.
- Franchise consultant First hire a franchise consultant; this will be of great help as he will help you focus on your objectives also help in giving direction to your thoughts. He will be your guiding angel throughout the entire process
- Objectives and Strategy You should be clear as to why you are acquiring a franchise and once you have acquired it how do you plan to run and promote it? A long term as well as a short term business plan should be ready, and your franchisor will help with this
- Finance procurement and Management You should calculate how much money will be needed for the venture. Where will it come from? How will you replay it? What will be your break even point?
- Research You should carry out proper research considering various aspects like demand for the franchised product, target group, business sustainability, competition etc.
- Legal Advice Legal advice should always be taken when considering the terms and conditions of the franchise agreement.
- Don’t rush into a business You should not rush into a business just for the sake of acquiring a franchise. Your decision should be purely based on market research. Otherwise ‘’ Haste makes waste’’
- Don’t make a decision till you know what you're getting into Get all the terms and conditions in black and white. All communication should be formally recorded
- Don’t let desire overwhelm you One should not let desire for a franchise overwhelm the power of logic and rational thinking.