Evaluating a Franchise in Three Steps
Franchises are sometimes a good option for entrepreneurs considering business incorporation online. As we’ve explored before, there are things you need to consider when comparing venturing on your own or incorporating a franchise.
If you’re considering a franchise, there’s much more than just whether it can make you money or not. You have to be sure you enjoy what you’re doing and if you have the skills for that.
Which leads to step #1:
First thing you need to do is evaluate all your options – our online incorporation blog post from September advises whether franchising is for you or not depending on your goals. Talk with people in similar industries and others in your community.
Gather as much information as you can!
Next, if you decide on a franchise, read the financial disclosure document (step #2) very carefully, word for word.
There are many things you can learn from the corporation’s FDD – is it financially viable?…what other franchisees are in your state?
Finally, get some professional advice (step #3) from an accountant and/or business attorney. Sit down and develop a business plan and consider the proposition’s profitability. Don’t make any final decisions before talking with the pros.
Read Three Steps to Evaluating a Franchise for more.