Buy a franchise make money or get scammed?

Let’s face it, many of the good franchise money-making opportunities were taken a long time ago. But do you still want a franchise? What and where do you look? In my opinion, what’s new, what’s hot, what’s the latest and greatest. Is it a fad, does it have growth potential, who is behind it?

First you need to find what interests you. Remember that you will spend more time running your own business than at home. So it had better be something you like and be affordable. Do not risk the fortune of your life, your home, your family for a franchise. Don’t roll the dice and risk everything. Make sure you leave yourself in a back position.

Once you select a franchise, do your homework. Start with franchisees who have stores for sale. This is done for two reasons: First, you can get a better deal buying an existing store than a new one. Also, you want to know why they are dating. The number one reason is that they are generally not making it. They will tell you all the problems with the franchise, some true, some not. The more franchisees you talk to who are selling, the better questions you will develop if you decide to approach this franchise for a new location.

When you’re done with your data-gathering quest, focus on the main people running this franchise. How long have the CEO, President, and COO been with this company? Has there been a constant rotation at the top? If so, it is not a good sign. Has the company moved several times to different states? Usually a sign of problems with that status, it’s not good either.

Support is a huge and important topic. What type of training will you need and for how long? Do you also get help when you open the store? Do they have a good marketing system and funnel enough money to market the concept? Strong support or the lack of it tells you a lot about a company.

Is the growth of new stores a constant 10% or does it not exist? Every good concept must have some part of positive growth. If everyone is selling their stores, that’s not a good sign either.

What about the fees? How much do these people get paid, is it high or is it low? What is your purchase and does it make sense? These are just a few ideas of what to look for in your search for a franchise. As you can see, don’t make an uninformed decision. Do your homework and go into this with a good knowledge base. good luck