Buy a franchise
How to purchase a franchise
There are a number of key things you need to consider when planning to buy a franchise. It is worth thinking about the following:
- Assess yourself to see what kind of franchise, if any, will suit you.
- Find out what franchises are available and draw up a shortlist.
- Assess franchise opportunities carefully, ask questions and talk to other franchisees.
- When you find a business, investigate its financial prospects. Base this on thorough research of performance figures. Include an analysis of three years' accounts - if they have been trading for that period - and management figures.
- If you'll need to raise finance, ask your bank if it will consider a loan for the type of franchise you're considering.
- Do your own market research into the business and the competitors in your area.
- Draw up a business plan.
- Check the franchise agreement and get professional advice.
However, it is advisable to make sure you don't:
- take up the first opportunity before investigating alternatives
- allow yourself to be hurried into making a decision
- pay any non-refundable deposit
- commit yourself before you're completely sure
- assume a business will work in your area just because it works elsewhere
- rely on the forecasts provided by the business selling you the franchise
- sign any agreement without legal advice
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