Buying a Franchise and Franchise Due Diligence
Critical Facts to Know About Buying a Franchise
1. One must be able to work within a franchise framework.
2. One can’t believe what is written about franchise success rates. Franchise failure rates are high.
3. ‘Free Franchise Consulting‘ ads are placed by brokers. Their goal is to collect a commission if a franchise they recommend is purchased. Here is the difference between a broker and a consultant.
4. Most buyers don’t understand what they’re buying. A bad purchase cannot be reversed. Don’t become an unhappy franchisee.
Three mindsets found among 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 conviction.
Our services are based on protection NOT commissions
First, let us be clear about what we do and not do. We don’t 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 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.
Nowhere else on earth is this type of support for buying a franchise available. 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. For the sake of your future, your finances, and your health, consider it strongly.
It is immaterial to us whether a client works with a broker, searches on their own, or uses any other means to identify franchises of interest. (However, doing that will always be easier and more efficient if the Focus Program is completed first.) Our job is to provide a greater layer of buyer protection through analysis and counsel. That can only be accomplished through loyalty to our client, the buyer, never the seller.
The self-study Focus Program for Emerging Entrepreneurs is a great insight tool and a valuable education for only $99. 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