[Franchising Red Flags] What To Look For In Franchise Opportunities W/The Franchise Coach



So, here’s the last thing I want to hear after awarding a franchise…

“I didn’t know that after getting into this”.

The first to examine is the Franchise Disclosure Document — http://blog.bintheredumpthatfranchise.com/franchise-glossary-25-franchising-terms-entrepreneurs-must-know/. Good franchise companies will encourage you, the candidate to read the document thoroughly, maybe have a lawyer read it and then come back to the franchisor with questions in relation to the FDD. It’s a definite red flag if you don’t feel the FDD is completely transparent.

You’ll want to know if there is any litigation referenced in the FDD. Has anyone sued this franchise company and why? If there is litigation going on, you need to find out why?

Another red flag is how indebted is the franchisor? Are they at risk? Business debt is much different than personal debt. Business debt helps you build and grow your business; however, a franchisor that has been in business for a long time should not be in debt and should be financially stable enough to support their franchise operators.

OK… This is an important one, so pay close attention…

Validation. It will be the most important thing you’re going to do in your research and due diligence. This is speaking to the franchise operators in the particular franchise company. Try to speak to franchise operators that are successful and others that aren’t as successful in order to understand both sides of the spectrum; this is typical in any franchise system.

The final red flag is a biggie. You want to ensure the franchise company you are potentially investing potential live savings into is awarding you the franchise agreement, not selling you the franchise agreement. Find a good franchisor that the process is one that awards franchises and do as much due diligence researching the candidate as you would, investigating the franchise company.

Discover more here http://blog.bintheredumpthatfranchise.com/starting-a-franchise-here-are-5-franchise-red-flags-to-avoid/



Source

Uncategorized

FRO Summit – Franchise Support Desk: Starting a Small Business and Franchise business Made Easy

#franchiseindia #franchise Source

Read More
Uncategorized

White Label Franchise Business | Lak Services Franchise | Work from Home Business Ideas | Franchisee

Low Investment Franchise Business Ideas from Lak Services. Start White Label Business and Earn up to 80,000 Per Month from Home Call Now at 7557557007 for Franchise Business of Lak services. or Apply at https://forms.gle/4ER55FimN9D3z5rZA Lak Services is a company based in Nagpur and Deals in Taxation and Financial Services Taxation Business Franchise Opportunity Start…

Read More
Uncategorized

Franchise owner BUILDS HIS BUSINESS, Now helps others BUILD theirs!

This business podcast episode today is an interesting story about how David started his own franchise from scratch. The first one in his state. He left the comfort of a stable job and wanted to be a business owner. He then developed a strong passion for franchising and is now a franchise consultant for people…

Read More