So, you’ve really found a franchise to buy.
You’ve decided that the franchise business you’re looking at is The One.
Your family is behind you. They’re very supportive of your idea.
Now, the work begins.
Franchise Due Diligence
This is where the rubber hits the road. But, the road may be curvy…maybe even bumpy. There could be several twists and turns as you dig in and learn all you can about the franchise that you want to buy. Don’t be surprised if you get cold feet at sometime during the franchise due diligence process. The franchise that you’re interested in won’t be perfect.
“Let’s be honest. There’s not a business anywhere that is without problems. Business is complicated and imperfect. Every business everywhere is staffed with imperfect human beings and exists by providing a product or service to other imperfect human beings.”
Do These Things
If you want to limit your risk, there are a few things you need to do…before you go out and buy the franchise you’re interested in.
1. Interview several franchisees via phone. If possible, visit a couple of them in person.
2. Visit the franchise company’s headquarters. Meet the executives, and see if the culture is a good fit for you.
3. Write the best business plan you can. Use business plan software that is readily available, and enlist the help of a CPA who is familiar with small business.
4. Hire an attorney who specializes in franchise law. This is crucial! Attorneys familiar with franchise law can quickly ascertain whether or not the franchise contract is of standard issue, and point out possible red flags in the Franchise Disclosure Document.
5. Make sure that you can really see yourself owning the type of franchise that you’re interested in purchasing.
Bonus Franchise Tip: Look at this as a long-term investment of your money and your time. Only move forward if it intuitively feels right to do so.
“You are always free to change your mind and choose a different future, or a different past.”