HOW TO INVESTIGATE A FRANCHISE OPPORTUNITY

We help franchise buyers make a thorough investigation of their intended investment before they execute a franchise agreement.

All franchisors require a personal guaranty from their franchisees, and if your franchise requires a lease of commercial real estate, the landlord, too, is likely to require a personal guaranty. Entrepreneurs often commit a great deal of their net worth to a franchise investment. Spending the time and money to do a proper due diligence investigation of the investment is essential.

Have A Plan - And Know How to Make One
Franchise buyers often come to us without having completed a business plan -- often not knowing how a business plan is put together. We help our clients understand what they need to know about a franchise opportunity and how to go about finding that information.

What to Know
We counsel clients on what they need to know about:

  • Likely revenue, expenses and profits
  • The quality of the franchisor’s training and support
  • How well the operating system and the marketing program work
  • What site selection criteria will make for a successful franchise
  • And many other issues.

Where to Find It
Although the law allows it, few franchise companies provide any information about the income or profits that a new franchisee can expect to make. So where will you get all the information you need to make a sound investigation of the franchise investment?

We help clients figure out where to get the information they need:

  • Who will provide data about revenue, expenses and income?
  • Where will you learn – before you put your money down – how well the franchisor supports its franchisees?
  • How can you confirm that the franchisor’s systems and programs really work?
  • Whose advice can you trust on real estate issues like site selection and dealing with landlords?

Learn more about How We Help Franchise Buyers.

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