Check the Pedigree!
Today, more and more people are choosing to become self-employed or, alternatively, buy a franchised business.
It’s a major shift in your life. It’s an exciting step for you with lots of potential advantages but also a downside which can damage your confidence and resources.
Let’s briefly explore the franchise route. With a good franchise – you’ll be in business for yourself but not by yourself. This is one of the biggest advantages over being self-employed.
But – it’s not automatic just because it’s a franchise. You need to start the procedure by doing your homework – check the health of its pedigree! In buying a pet, you’d do that, so why not take this route before finalizing your next occupation?
A few quick tips:-
- First - Analyze yourself:
-What do you want, need and how much do you have to invest in
money, time and perspiration?
- Second – Ask for the franchisor’s pedigree. Here are some questions:
- How old are you?
- Can I talk to all your other franchisees?
- How many of your outlets have closed? Where? Why?
- Is your company a member of the Canadian Franchise Association?
- What do you supply?
- Can I have copies of all documents for my lawyer and accountant to review?
- What are the usual sales and profits in the first two years?
- Who chooses the location?
- Do I pay you for your exact cost for construction, lease and supplies?
If not, how much extra? Do I get a copy of your lease?
- How long is my franchise agreement and lease?
- What must I guarantee?
Once you’ve satisfied these and probably other questions, you can decide if you want to buy in and commit yourself.
© C. John Woodburn