Step 1. Understanding how to buy a franchise depends on your goals.

Most folks interested in how to buy a franchise are really lookers, hobbyists or dreamers. They can afford to investigate online to their hearts content and never drill down into the soul of the matter. But for the serious buyer, the person who is committed to working out the finer points, it is a whole different story. Buying a franchise is a life changing event that can be either for the good or end very badly. So, for these people it should never be about how to buy a franchise, but why and if one should buy a franchise. Which specific franchise, if any, to choose should be considered much later.

Step 2. You must do meaningful self-analysis.

New franchise buyers begin their search with the same natural behavior found in any buying event. For example, cars, like franchises, come in a variety of categories, uses and prices. You might want a high end luxury model but find it’s out of your range. Or, you might want a sports car but that won’t accommodate your family. These are examples of obvious facts that force people into more reasonable choices. But it’s the less obvious issues that can be easily overlooked or worse yet, ignored, that are the real trouble makers.

Knowing how to buy a franchise is more about the subtle issues than the obvious ones. The trick, like most life decisions, is to be fairly sure of what’s good for us before making a decision. Of course, seeing beyond the obvious is difficult, but harder yet is being honest about what we choose to ignore. So, if you’re serious about learning how to buy a franchise, you’ll stop your internet search and start searching yourself. Our very extensive and unique insight tool is the Focus Program for Emerging Entrepreneurs. But, whatever means you choose to complete this step, take it beyond the your own obvious issues.

Step 3. Narrow your choices based on your needs not on HYPE.

Entering the franchise world for the first time is like a kid going to a carnival. So much is happening. The excitement is overwhelming and concentration can be lost. That’s a beautiful thing for a kid at the carnival. But for the franchise buyer, going in without a plan can be distracting or dangerous or both. The franchise hobbyist is there for fun and should run free, but the serious buyer should enter with blinders so as not to be overly distracted.

Hence, the real benefit of Steps 1 and 2 is to help focus in Step 3. Never forgot that franchise sellers know more than you know, not only about their concept, but about franchising in general. Their job is to reel in another franchisee. Your job is to remain aloof, but with a plan.

Step 4. You must exercise proper investigation and due diligence.

There is no sense narrowing your choices in terms of businesses that might suit you if you do not know how to buy a franchise in terms of the quality of a specific brand. Franchise due diligence is a must and most first time buyers are completely lost in that game. Why wouldn’t they be? It’s brand new to them. Therefore, quality, competent help is required to help discern what is being said and sold. Get competent help in this department.

Step 5. Use caution with franchise brokers.

Sometime in the 1990’s independent franchise sales people began referring to themselves as franchise ‘consultants.’ Until that time the term consultant was used exclusively by ‘fee for service’ consultants primarily involved with creating new franchise brands. Now, the hundreds of brokers calling themselves consultants have made it difficult at best for new comers to discern who and what they are dealing with. The only word of caution is this: the franchise consultant/broker is introducing clients to concepts they represent to earn a commission. The fee for service franchise consultant charges a fee to work for and represent the buyer. Enough said.

Step 6. Go slow. Check and double check everything that is said, and make sure you understand the paperwork.

It is really sad to say that most franchise buyers do not understand what they purchased until long after the sale and the business is in progress. This is because they do not take the time for proper due diligence and do not understand the paperwork they signed. Franchising is not nearly as secure and safe as you are led to believe. In fact, the failure rate is quite high. Be very careful.

It is quite amazing to think people will spend $100,000 and much more without fully understanding their purchase. It is even more amazing to think that these same people will not spend for pre-purchase counsel. Penny wise and pound foolish.

For further information on how to buy a franchise, explore this site and be sure to read the articles.