Before signing on the dotted line be sure your due diligence is complete.
When prospective franchisees search for franchise opportunities they have the advantage of accessing a wealth of information. This information can be found on the Internet and in various books and articles dealing with the subject of franchising. There are state websites and the FTC website. There has never been so much information available on the subject of franchising as there is in the past several years.
However, this vast amount of information can represent a double-edged sword. On the one hand individuals are able to learn about franchise opportunities, how to evaluate a franchise and the steps to follow in purchasing a franchise. Conversely, there is the danger that the availability of this information may lead a prospective franchisee to think that they need not rely upon professional expertise. I would use the example of the various Internet sites that deal with healthcare. Its not uncommon for people to go on the Internet and visit a healthcare site, which describes the symptoms for a variety of illnesses, and perform a self-diagnosis without ever visiting a doctor. Hopefully, people who do this exercise good judgment and visit a doctor when appropriate.
In the case of evaluating various franchise opportunities I encourage individuals to learn as much as possible about the entire franchise process. This advice includes knowing what questions to ask about the franchise, evaluating the franchisor and interviewing existing franchisees of the franchise being considered. There is one aspect of franchise due diligence that must be completed before signing the franchise agreement and paying the fee. A prospective franchisee must have a franchise attorney or competent franchise consultant review the franchise offering circular. Whether this review is done at the beginning of the franchise process or at the end it has to be done. More.
Also read: Tips For Franchisors.
No comments yet.