Written by Efranchisesale Staff Tuesday, 06 July 2010 17:00
Before you enter the franchise marketplace and start perusing the franchises for sale listings, there are a number of key things to consider.
- Start by assessing yourself to see what kind of franchise will suit you best.
- Then take a look at the listings in a franchises FSBO directory and draw up a short list of prospects
- Don’t be afraid to ask questions of other franchisees to find out what they like and don’t like about the business.
- After identifying the business model you like best, it is time to do some research. Find out how strong its financial position is, in comparison to competitors. Look at performance figures, analyze the past few years of financial statements, and find out how long the typical franchisee takes to become profitable.
- Conduct your own research of your immediate area and identify any competitors, including similar franchises that are expanding rapidly in your county and state. Do not rely on the business research provided by the franchisor.
Banks and Lawyers Can Be Your Friend
- Ask your bank if it will consider a loan to finance the type of franchise business you want. Most franchisors also offer their own financing options.
- Before you move forward, be sure to ask a business advisor or attorney to review your business plan and the franchise agreement. Do not make any non-refundable deposits on a franchise or commit yourself to the business before you are 100% certain.
Deal directly with the franchisor and be sure all your questions are answered before you sign an agreement. Finding a franchise business is always easier when you search a franchises FSBO directory such as eFranchiseSale.com.