To sum up, you must pay close attention to the following factors:-
- Weigh advantages and disadvantages.
- Assess yourself.
- Assess the business.
- Assess the franchisor.
- Assess the franchise package.
- Speak to existing franchisees.
- Don’t become so “besotted” with the franchise opportunity that you lose all objectivity.
- Consider and put into perspective the advice of others, who are qualified to give it.
- Do not dismiss advice which is given because you do not like it.
- Consider and consult your family.
- Make up your own mind.
The following are danger signals, which either (as in the case of pyramid or other schemes) rule out the proposition, or indicate that you need to make a very deep and careful scrutiny of the particular franchise you are considering. So beware of:-
- Heavy initial franchise fees.
- Pyramid-type schemes.
- Franchisors whose continuing fee income is too low to support the services with which they should provide their franchisees.
- Contracts which do not match promises and are vague and lacking in detail.
- The hard sell.
- Franchises which are based on passing fads or fashions which may not have staying power.
- A franchise consultant purporting to offer independent, objective advice, but who is, in reality, offering a franchise for sale on a commission basis or also advising franchisors. There is an obvious conflict of interest.
- Get rich quick offers.
- Franchisors who have not invested in pilot operations.
- Fee arrangements where you have to pay a minimum fixed cash sum regardless of whether or not you do sufficient business.
- Franchisors who have a significant number of franchisees who are not happy with the quality of their services.
Finally, thanks for reading the articles and good luck for the future with whatever decision you may make. If you do choose the franchise route, work hard in every aspect of your new business, and also in your relations with your family. Their moral, and practical support, will be a key factor in your success in your new business.