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5 Tips to Consider Before You Buy a Franchise

June 21, 2017 CPAs & Advisors

For entrepreneurs seeking a lower-risk, turnkey opportunity, a franchise can be a good fit.

But to help ensure you are making the right choice be sure to consider:

1. Self Assess. Franchise systems are highly structured and best suited to owners willing to follow rules and listen to feedback.

2. Perform Research. Some franchises are better than others. Look for negative media accounts and talk to current franchisees.

3. Be Realistic. Franchises are rarely profitable the first year – and can take even longer to yield a reliable income for owners.

4. Ask the Professionals. A lawyer needs to review your franchise agreement and an experienced CPA should prepare cash-flow projections.

5. Read the FDD. The Financial Disclosure Document covers everything from fees to advertising Litigation Support .

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