Why Sign Up as a Franchisee

Joining a franchise system might be the best thing for you if you want to be a business owner but not from scratch. A franchise might work if you:

  • Are drawn by the security of having an already-branded business with proven services or products.
  • Like the idea of an operation that has already done the hard trial and error work of establishing business operations and building a demonstrated support system.
  • Are comfortable with following franchise guidelines.
  • Already have or can get the franchise fee and startup costs.
  • Are willing to part with some of what you make in the form of monthly royalties, advertising fees and other costs.
  • Know it will take a lot of work and are willing to do it.

                                                  But Beware of These Franchises

If you’re considering a franchise and are performing your due diligence, be cautious of franchises that:

  • Do not offer a proven business concept coupled with a successful operational system.
  • Lack brand recognition.
  • Have a history of litigation or continual strife with franchisees.
  • Offer minimal startup help and little ongoing training and support.
  • Advertise very little if at all.
  • Balk at territory exclusivity
  • Are reluctant to give you a list of former and current franchisees.
  • Use franchise fees to pay for selling new franchises.
  • Obligate you to purchase services, inventory or supplies from their approved vendors (or the franchise itself) at inflated prices.

No matter what, it’s a good idea to hire an attorney that specializes in franchising to help you see it all the way through.

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