What should I check before investing in a franchise?
What should I check before investing in a franchise?
I’m thinking about buying a franchise, but I’m not sure what factors I should consider before signing any agreements. What are the key things to look for in the franchise disclosure document, and how can I evaluate if a franchise is truly profitable? Any tips or experiences would be really appreciated!
2 Answers
Before investing in a franchise, you should carefully check the following key points:
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Franchise Reputation & Brand Strength – Research the company’s history, market presence, and customer reviews. Make sure it’s a trusted and stable brand.
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Franchise Agreement – Read the legal document thoroughly to understand your rights, responsibilities, and restrictions as a franchisee.
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Initial & Ongoing Costs – Check all fees such as franchise fees, royalty fees, marketing contributions, and setup costs to calculate your total investment.
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