Your Essential Franchise Buying Checklist
January 15, 2023
If you’re considering buying a franchise, there are many factors to consider before making a final decision. With over 3,500 different franchise opportunities available, it can be challenging to navigate through the process of finding the right one for you. Here are ten tips that can help guide you in the right direction.
- Start with your business skills — Determine your strongest skills and look for a franchise that will best utilize them. Whether you’re excellent at sales or marketing, operations, or management, finding a franchise that aligns with your strengths can set you up for success.
- Be willing to follow the franchise system — In franchising, you’re purchasing a license to use the franchisor’s business system. It’s essential to make sure you’re comfortable using someone else’s procedures and processes. Ensure you follow the system’s rules and procedures to run the franchise effectively.
- Get family support — Deciding to start a business, including a franchise, should be a family decision. Ensure your family understands the demands on your time and is supportive of your decision to invest in the franchise.
- Evaluate your net worth — Before you start seriously looking for franchise opportunities, evaluate your net worth. This will help you set a budget and will be necessary when talking to franchise sales representatives.
- Talk to franchise owners — Talking to as many franchise owners as possible can provide insight into the franchise’s success rate and potential profitability. Ask lots of questions and even consider spending a day with existing franchisees to learn more about their experience.
- Don’t rush through the research process — Thoroughly research franchise opportunities and talk to both happy and unhappy franchisees. Be willing to discuss what you learn with the franchise company’s sales representative.
- Read the Franchise Disclosure Document (FDD) — The FDD is the legal document sent to you by the franchise company that details information about the franchisor and the franchise opportunity. Read it thoroughly, take notes, and be prepared to ask questions.
- Visit the franchise headquarters — Invest in visiting the franchise company’s headquarters to meet the executive and support team in person. It’s essential to establish a personal connection with the franchise team as you may end up partnering with them.
- Hire a franchise attorney and CPA — After you visit the franchise headquarters, hire a franchise attorney to review the FDD and franchise agreement. It’s also a good idea to hire a certified public accountant (CPA) to help with financial projections and decide on a business structure.
- Do a gut check — After gathering data and consulting with professionals, do a gut check. Does the franchise opportunity “feel” right? If something doesn’t feel right, don’t make a rushed decision. There will always be other opportunities.
Buying a franchise is a significant investment that requires careful consideration. Following these ten tips can help you navigate through the process and find a franchise opportunity that aligns with your skills, budget, and goals. Remember, investing in a franchise is a partnership, and it’s crucial to establish a personal connection with the franchisor and the franchise team to ensure mutual success.
If you want to learn more about what goes into owning a franchise, give UNITS® Moving & Portable Storage a call today! We can help you fulfill your dreams of becoming a business owner with our moving and storage franchise opportunities across the country. Start your evaluation today and join the UNITS® family!