What products or services would you enjoy selling? What industries do you like, or dislike? Your best bet is to find a franchise in an industry you know at least a little bit about. All too typical is the case of the Chicago car salesman who decided to change careers and go into business for himself. He bought a basement waterproofing franchise but then found the business boring. He wanted to sell it, but sales weren’t as high as he had expected they would be and he had trouble finding a buyer. He was stuck paying off the franchise fee and working at a business he didn’t enjoy.
How much money do you have available to invest? The amount of money you have available to invest in a franchise is an important factor. If you’ve only got $30,000 and the minimum investment for a specific franchise opportunity is $90,000, the opportunity isn’t going to be right for you, no matter how much you like the company.
What’s the total cost of purchase? The franchise fee won’t be your only expense. Find out what you can expect to pay for advertising, training, inventory, insurance, and all other costs in addition to the franchise fee and royalties.
How well established is the franchise? How long has the franchise been in existence? Have they been in business for many years or are they brand-new? How many other franchises have they opened and where are they located?
How stable is the franchise? What is the background of its officers? (Any history of litigation or bankruptcy of the franchise or its officers is supposed to be included in the disclosure document.)