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Choosing the Best Franchise is No Small Matter

Dave Thomas

November 07, 2014

For an increasing amount of Americans, the idea of going into business for themselves continues to grow.

Whether it is the worry of corporate layoffs, a desire to cut down on what at times can be long commutes or just the wish to be their own boss, reports show that more individuals and even some families are making the move to purchase and run their own franchises.

With that in mind, there are a number of factors that people should consider before attempting to just go out and buy the first franchise that comes their way. With the right planning, the right franchise can be purchased, allowing for opportunities of growth and maybe even financial happiness.

Do You Know Where to Look?

First and foremost, individuals need to know where to look for the right franchise and how to avoid getting taken advantage of.

In order to do things the right way the first time around, individuals should:

1. Know your goals and limitations – Before you can begin the franchise hunt, make sure you know what your financial limitations are. In some instances, small business owners get into heavy debt quicker than they can get out of it. It is important to know how much money you have in your savings and what kind of financial loan you may qualify for. Do all the finances first so you can get a better feeling for what kind of franchise will or will not work for you;

2. Work with a reputable franchise provider – When you deal with a franchise provider such as Franchise Expo or another reputable business, you lessen the chances of being put in a bad position. Take the time through both the Internet and via referrals, friends, family etc. to learn about each and every franchise provider you want to talk with. Check with the Better Business Bureau (BBB) to see if there are any issues regarding the company’s background, customer service dealings etc. Know up front who exactly you are dealing with;

3. Set franchise goals – What are your goals in owning a franchise? Is it something that will just be short-term or is this a long-term investment for you and/or family members? Some franchises can be very cyclical, especially depending on how the overall economy is doing, so keep that factor in mind too. If you’re looking at owning a certain type of franchise for the long haul, look to see what its success rates have been over the years. If it is a business field that has had a number of ups and downs, you may want to steer clear of it. Lastly, avoid expanding too quickly. It is important to take your first franchise and allow it to grow and prosper before moving on to the next one. If you move too quickly, you could see your business dealings be financially hurt, especially as the economy and markets change.

Owning your own franchise comes with challenges, but the rewards can be all too appealing.

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