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Shopping For a Franchise

Shopping For a Franchise

Shopping for a franchise is easy if you know what you are doing. You can choose between radio adverts, newspaper adverts, personal recommendation, Internet, or visit a franchise exhibition. Attending a franchise exhibition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors primarily want to sell their franchise systems. Before you attend, research what type of franchise best suits your investment limitations, experience, and goals.

Do not be pushed into making a rash decision. Here are some useful tips for you to consider in helping you decide which franchise is best for you:

Investment Capital: An exhibitor may tell you how much you can afford to invest or that you can't afford to pass up this opportunity. Before beginning to explore investment options, consider the amount you feel comfortable investing and the maximum amount you can afford.

Right Franchise: An exhibitor may attempt to convince you that an opportunity is perfect for you. Only you can make that determination. Consider the industry that interests you before selecting a specific franchise system. If the industry does not appeal to you or you are not suited to work in that industry, do not allow an exhibitor to convince you otherwise.

Compare Deals: Visit several franchise exhibitors engaged in the type of industry that appeals to you. Listen to the exhibitors' presentations and discussions with other interested consumers. Exhibitors may offer you prizes, free samples, or free dinners if you attend a promotional meeting later that day to discuss the franchise in greater detail. Do not feel compelled to attend. Rather, consider these meetings as one way to acquire more information and to ask additional questions. Be prepared to walk away from any promotion if the franchise does not suit your needs.

Verify Claimed Earnings: Some franchisors may tell you how much you can earn if you invest in their franchise system or how current franchisees in their system are performing. Make sure you ask for and obtain written substantiation for any income projections, or income or profit claims. If the franchisor does not have the required substantiation, or refuses to provide it to you, consider its claims to be suspect.

Do Not Be Rushed: You may be told that the franchisor's offering is limited, that there is only one territory left, or that this is a one-time reduced franchise sales price. Do not feel pressured to make any commitment. Legitimate franchisors expect you to compare deals. A good deal today should be available tomorrow

Check Documentation: Do not sign any contract or make any payment until you have the opportunity to investigate the franchisor's offering thoroughly Study the disclosure document. Because investing in a franchise can entail a significant investment, you should have a lawyer review the disclosure document and franchise contract and have an accountant review the company's financial disclosures.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

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Shopping For a Franchise

Small Business