Buying a Franchise and Franchise Due Diligence – Critical Facts to Consider
1. Buying a franchise means that you will be working within a given system. If you don’t like operating under someone else’s guidelines, you will not be happy as a franchisee. If you like proven businesses that work, then franchising might be a good choice.
2. Do not believe that franchises are almost risk free. The fact is: Franchise failure rates are high.
3. When you see an advertisement that says ‘Free Franchise Consulting‘, it means you will be dealing with franchise brokers and salespeople. They will be paid a fee or commission if you buy a franchise they recommend. Here is the difference between a broker and a consultant.
4. Most franchise buyers don’t understand what they are buying because they do not conduct adequate franchise due diligence. A bad purchase cannot be reversed. Don’t become an unhappy franchisee.
Three Mindsets Among Potential Franchise Buyers
“I trust my instincts, so I’ll know if a franchise suits me”. Without knowledge of franchising and franchise due diligence, instincts are meaningless.
“I’ll verify what I’m told and find out the truth about different opportunities.” Inexperienced buyers don’t know what or how to verify.
“I’m confident this is a quality franchise and it suits me in all respects.” This is where a buyer should be. Our methods focus on clients being able to say it with greater conviction.
Our Services for Buying a Franchise are Based on PROTECTION NOT COMMISSIONS
We do not sell franchises, conduct searches, accept commissions, or represent franchisors. We do provide expert franchise counsel, analysis, and due diligence focused only on our clients’ best interests. In fact, we consider it a great outcome when a buyer rejects a particular franchise or the idea of franchising altogether if it’s not for them. Avoiding any potential disaster is always a good result.
Our Proven System for Buying a Franchise
Step 1. The Focus Program for Emerging Entrepreneurs. This unique course helps prospective buyers gain better insight into two critical questions: Should I really be self-employed? If so, what type of business should it be?
Step 2. Mentoring to resolve three critical issues: understanding the franchise model, understanding the business environment that best suits the person, and narrowing types of franchise concepts.
Step 3. Franchise Due Diligence: Proper franchise due diligence exposes a franchise in order to see beyond the marketing and into the reality of an opportunity. We work with clients in performing meaningful due diligence and analysis to answer critical questions. The result is better, more informed decisions.
Step 4. Franchise selection: The only person who should make a buy/no buy decision on a franchise is the buyer. However, we can and will help reject a particular franchise or the whole idea of franchising if it’s not right. Through the entire process, clients learn what can work for them and what should be ignored.
This is much more than a review of paperwork. It’s an analysis of the franchise system and you as a potential franchisee within it.
One Last Note
Whether you choose to work with us, use a broker, search on your own, or use any other means to identify franchises of interest, it will always be easier and more efficient if the Focus Program is completed first.
The self-study Focus Program for Emerging Entrepreneurs is a great tool for personal insight. Follow up consulting fees are reasonable. And, they nothing compared to a bad purchase.
An informative exchange comparing franchise buyer services
Client Statements –
“I struggled with buying a franchise. I needed a mentor focused on my situation, not an opinion on what might be a good franchise to buy. Your process slowed everything down. I got to know myself as an entrepreneur and create a logical, comfortable plan for making decisions. In a short period of time I replaced confusion with confidence, and knew my direction. I’ll continue to reap the benefits of what I learned through this process. I’d definitely do it all over again.” Randy R. – Texas
“It really was a fascinating discussion of the opportunity I was considering. Your fee may go down as one of the best investments I ever made. It’s up there with buying Dell in 1995. Anyway, I’m doing a lot of thinking this morning about my future. I’ll be calling you every month for the rest of my life if each time I can save $250K!” Ira B. – New York