It’s clear that purchasing a franchise is one way to take back control of your business career. But selecting the right franchise is really a difficult and involved decision and the more insight you can get, the better off you'll be.
Franchise Direct has published some excellent advice on making this huge decision. There is other excellent advice on the internet, such as this new article from the Business Journal of the Triad Area, which features the wisdom of Bob Purvin, chairman and CEO of the American Association of Franchisees and Dealers in San Diego.
The first thing you will always hear when considering franchise ownership is “do your homework”. Bob tells you the same thing, but some of his other advice is quite prescient.
“The best companies have proven management philosophies,” he says.
As a rule of thumb, Purvin advises franchise prospects to budget 2 percent to 5 percent of the total investment for due diligence. For example, an attorney is going to cost between $1,500 and $2,000 to review the offering.
“You will be looking at $5,000 to $6,000 in professional expenses to determine if the company is the kind of company you want to partner with,” he says.
As far as Bob is concerned, the money you pay up front will back bountifully in the long run. It’s always good to exact figures for these investments and we’re happy to pass this one. Best of luck with your decision, and odds are you’ll find that ideal franchise for you with Franchise Direct.