For those who want to have a business but are not yet able to come up with the resources that are needed to start their own, buying a franchise is an option.
By buying a franchise, you will have a lesser risk and you will spend less time in establishing your name because your franchisor already did that.
But still, even picking the best franchise to start is not an easy feat. Here is a list of questions that you can ask before signing that contract with a franchisor.
1. How long has the company been operating?
This is the first thing that you have to ask. Because you won’t want to be stuck with a company that has just been opened and is in the process of testing the waters. You will want to invest your money in a company that has braved the tides of business.
2. How is the company doing financially?
The next thing you need to know id their financial stability. Because not all business that has already been in the market for a long time is financially stable. Try to look at the past 3 to 5 years of their records to be sure.
3. How can you become a franchisee?
Ask the requirements so that you’ll know what to prepare in case you decide to push through with your decision to franchise. Make sure you give the complete requirements, as this may result in a bad impression is done otherwise.
4. How strict are they?
You have to know which decisions and rights are to be given to you if you buy. This will be where you will determine if you have a say when it comes to pricing, location, choice of suppliers, or if there are other restrictions that you need to know.
5. How long is the contract?
You have to know how long your bond will be. Also, read about the termination clause, because worse comes to worst when you want to bail out, this seemingly little information is what will help you terminate the contract.