Franchise Research
According to a recent Investor Protection Trust survey one out of every 5 citizens over the age of 65 has been the victim of a financial scam. Before investing in a franchise do your research. If it sounds too good to be true it probably is.
If you are considering the purchase of an existing business or franchise resale, we recommend The Business Buyer Resource Center – Diomo Corporation as they have been working with purchasers for over 25 years.
There are many books to help you start your own business. Check your local bookstore or go to Amazon.com and enter “Start your own business” in the search box. Check with the National Association for the Self-Employed. They have consulting information for anyone interested in starting a business. You can ask a question on their Website and they will call you back. They offer this service to members and the cost to join for a year is $120.
Talk to others who have purchased. Talk with franchisees that you have identified as opposed to those whose contact information is given to you by the franchisor.
Make sure to allow enough time for a thorough review. This is not the time to move quickly even if you are pressured to do so. Due diligence is necessary when purchasing a franchise and there are often substantial costs over and above the costs of a license, franchise fees and operating manuals. Talk with other franchise owners to get some insights on their relationship with the franchisor and perhaps get some input on some of the unforeseen difficulties you might run into.
Make sure to have your accountant check expenses and revenue. Hire an attorney who specializes in franchise law. In addition to checking the financials you must also check the industry and the competition. Review all contracts, licenses and leases with your attorney and also review employee records and whether customer trending has been up, down or about the same during the past year or so.
If you are considering the purchase of an existing business or franchise resale, we recommend The Business Buyer Resource Center – Diomo Corporation as they have been working with purchasers for over 25 years.
There are many books to help you start your own business. Check your local bookstore or go to Amazon.com and enter “Start your own business” in the search box. Check with the National Association for the Self-Employed. They have consulting information for anyone interested in starting a business. You can ask a question on their Website and they will call you back. They offer this service to members and the cost to join for a year is $120.
Talk to others who have purchased. Talk with franchisees that you have identified as opposed to those whose contact information is given to you by the franchisor.
Make sure to allow enough time for a thorough review. This is not the time to move quickly even if you are pressured to do so. Due diligence is necessary when purchasing a franchise and there are often substantial costs over and above the costs of a license, franchise fees and operating manuals. Talk with other franchise owners to get some insights on their relationship with the franchisor and perhaps get some input on some of the unforeseen difficulties you might run into.
Make sure to have your accountant check expenses and revenue. Hire an attorney who specializes in franchise law. In addition to checking the financials you must also check the industry and the competition. Review all contracts, licenses and leases with your attorney and also review employee records and whether customer trending has been up, down or about the same during the past year or so.
Make sure to check out our list of franchise businesses appropriate for boomers, seniors and retirees by going to our start your own business franchise list.