‘Franchises for Sale’ is a Fishing Net – Don’t Take the Bait
Internet searches of ‘franchises for sale’ can be both informative and fun for buyers new to the field, but it’s not a past time for those with experience.
Think of the term ‘franchises for sale’ as an enormous dragnet capable of catching the eye of any and all types of buyers remotely interested in franchising. And as far as franchisors are concerned, the more viewers the better. What works far better for prospective buyers is putting the franchise opportunity lists aside and starting a search from the inside. If you don’t first figure out what you want and why you want it, you’ll be prey to a good story. And far too many franchisees have fallen for a good story.
Experienced business buyers bring a definite plan to the process. Very little, if anything, is left to chance. And those items that might be categorized as unknowns, are on a list to be investigated during serious due diligence. The vast majority of inexperienced buyers don’t have a plan and don’t conduct serious due diligence for one simple reason. They think they’re very capable of analyzing franchise opportunities own their own. Well newsflash: an amateur’s approach to buying a franchise is not overcome by one’s age, employee management experience, formal education or interviewing a franchise sales team. It’s overcome by knowing what to look for, how to discover it, and the meaning of what’s discovered.
Amateurs and professionals fall into two different categories for a reason and the two will never be equal in real competition. A list that’s titled ‘franchises for sale’ is simply a signal to amateurs that there’s a competition ahead, and that competition has already been mapped out by professionals.
Franchise attorneys, accountants, and experienced business owners are good resources when investigating franchises, but first, know how a business is supposed to fit YOU, not the other way around. Yes, we’ll offer a suggestion, and it comes from years of seeing people make bad mistakes when buying a franchise; mistakes that could have been avoided. Here’s our systematic approach to franchise due diligence: How to buy (or reject) a franchise.