By Ron Simmons
Buying a franchise is no guarantee of success. However, it does afford you (most often) the availability of company developed systems by the franchisor. The franchisor may help you find a location, provide training as well as an operating manual, advice on management and marketing. There is also the benefit of a branded product of service already in place. These benefits may cost you an enormous amount of money on the front end as well as require you to give up a great deal of control over the business under the contract. Either way, here is a short list of things to think about if you are considering the purchase of a franchise-
- Find a desirable Franchisor.
- Check to see if they are on the www.SBA.gov website as a listed franchisor.
- Ask for their “offering circular” or sometimes called the “prospectus”. If they are a true federally regulated franchisor they should have one available. Review and read.
- (If Franchise already exists) Acquire and review 3-year financial history of the business.
- Search social media for online reviews.
- Attend an SBDC Starting a Business class www.georgiasbdc.org.
- Make an appointment with an SBDC Consultant and become a client at no/charge.
- Inquire about an established outline that provides guidelines from the Franchisor for a business plan that is proprietary to the particular industry type. If there is not one available, ask your SBDC consultant for assistance with writing a business and marketing plan.
- Secure financing if necessary.
- Open your business with all the necessary licenses and permits, bank account, tax #’s, etc.
- Follow-up with your SBDC Consultant
For more information on buying a franchise, see the following link to A Consumer’s Guide To Buying a Franchise.Source: http://www.business.ftc.gov/documents/inv05-buying-franchise-consumer-guide