It may take some labor to find the right
franchise business so don't throw in the towel. There are a number of sources for the information you will need before selecting the right franchise. It may take some effort to find the right franchise so, don’t compromise.
There are a number of sources for the information you will need before selecting the right franchise
opportunity. Some web sites allow you to read more detailed information on a brand and give you an idea of price and royalty structure, etc…
Once you have decided which industry interests you most, and seems to have growth potential in your area, contact all the franchise companies in that field and ask them for information. You will most likely need to give them some upfront information in order for the company to take you seriously and send you information. The size of the franchise should not restrict the availability of information you need regarding the company's history and profile, market conditions, the franchisees role and the costs involved.
Franchise information that is pertinent to your investigation is disclosed in the Uniform Franchise Offering Circular (UFOC). The UFOC serves as a protection for the individual against making a decision based on information not supported by facts. The UFOC contains information regarding how the business is ran, any litigation or bankruptcy filings, investment costs and fee requirements, the franchise rules and restrictions, and contact information for each of their franchise units.
Franchisors are obligated by the Federal Trade Commission to fully disclose all material information about themselves according to federal law called the Franchise Rule. Some details might not be available until you sign on the dotted line, but they shouldn't intentionally withhold information. Most franchisors will not make earnings claims but they will provide information with which you may extrapolate gross sales.
The UFOC is not the only place to find this information, and you certainly shouldn't rely on it alone. You may also contact local chambers of commerce or business development organizations and see if they might supply information pertinent to your research.
Read all the information you receive thoroughly noting any first impressions and any initial questions you may have. Organize an appointment with each franchisor and when you meet them, get as much information as you can to make an informed decision. You will not only get crucial information for your decision, but will get to meet the staff that will be providing your initial training and continuing support.
Existing franchisees are your best source of information for finding out what really happens in a business on a day-to-day basis. Your attorney should look at the franchise agreement before you sign it and your CPA should review a copy of the franchisor's income statement and balance sheet, as well as any other pertinent financial information found in the UFOC.
Although it might seem a little hasty, knowing how you want it all to end someday is a necessary part of selecting the right franchise for you. The key to finding the right franchise is self-knowledge. Because choosing the right franchise is the key to your success, choosing which franchise to purchase is as personal as choosing a home.
About the Author
Fred Brown is a franchise executive with over 20 years of experience in the franchise industry. He now writes for http://www.franchisebrief.com, an online directory of franchise business opportunities for sale. The website includes a franchise blog providing valuable insight and information, including a mix of news, articles and commentaries about franchising and franchise opportunities.
Fred Brown is a
franchise executive with over 20 years of experience in the franchise industry. He now writes for
http://www.franchisebrief.com, an online directory of
franchise business opportunities for sale. The website includes a
franchise blog providing valuable insight and information, including a mix of news, articles and commentaries about franchising and franchise opportunities.
