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Don't Have Buyer's Remorse: Look Before You Leap

If you are making the all-important decision to go through with investing in a franchise, definitely make sure to do your homework before you start a business. In fact, some simple research can get you on your way to business success!

  • Make sure you take a careful look at the Franchise Disclosure Document. That should detail everything you need to know about the franchise, and you can then make sure to ask the franchisor about those topics. This should give you a good idea of how rigid the franchisor is about their operating rules. Also consult your lawyer on the document.
  • Talk to the franchisees. There's no one else that can give you the insider scoop on what day-to-day life will look like for you once you invest in the franchise. So make sure you ask these franchisees the right questions so they can give you straight answers about whether or not they are actually turning a profit, and what the start-up costs really were.
  • Go to the head office of the franchisor. That will give you an idea of what the operation is like, and also you will get to meet the staff. You'll be getting an in-person impression of what the franchise is like, which can prove valuable when starting your own franchise. Try to glean how responsive and helpful the support team is, and whether or not you will really have someone at the end of the line to help you should you run into a glitch.

Once you have some of your basic questions answered, make sure you are not just passionate about the business, but that the numbers and what franchisees are saying match up. That means the Franchise Disclosure Document, the existing franchisees and the head office support team all pointed toward the same conclusion. This needs to be a smart business decision that thoroughly weighs the franchise opportunity from all angles. Then, if you're ready to take the leap, be prepared for hard work... and some business success!

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