How to Pick the Right Franchise

A franchise is a good choice for someone who wants to own her own business, but doesn't want the burden of the trial and error process. A franchise has already gone through the testing and perfected after failures and mistakes. As a franchise owner, you simply run the business by the established regulations that you already know work to keep the business in the black. If you decide to become an owner in a franchise, you must first pick the right franchise for you, and the steps below will help.

Instructions

Difficulty: Moderately Challenging

1. Research the available franchises on a national level. You can use the various lists and directories found online (see Resources) or hire a franchise consultant.
2. Be sure that the franchises you look into are offer products or services that are in high demand, which will lead to an almost guaranteed success.
3. Narrow the list of franchises that you will choose from down to those whose products or services interest you the most. You must find interest in the business to ensure that you will get the most out of the experience.
4. Obtain a Uniform Franchise Offering Circular (UFOC) from each of the franchises on your short list. UFOC's provide information on the business, including the operation practices, fee and investment requirements, and any litigation or bankruptcy.
5. Talk to other owners in the franchise to find out what they think of the business. Ask them when they finally made a profit, if the franchise offers a strong support system and if they feel it was worth the investment.
6. Hire an attorney that specializes in franchise agreements to go over the details with you and make sure the agreement represents your best interests.

Tips & Warnings

• Franchise Agreements can be difficult to understand (see Resources), so it is crucial that you hire an attorney to represent you in the franchise process.