6 Facts You Need To Know Before You Buy A Franchise!

By Author: the franchise universe
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Across countries, continents, time, and space if there’s a business model every businessperson would like to invest in, it is that of buying an existing franchise. Without getting into the hassles of managing everything and yet knowing fully well the extent of profitability is one of the biggest USPs of this model of business. That said, it is still a business deal which can go either way if things don’t go as planned. From experience it is rather clear that one of the main reasons behind a franchise not working in favour of the franchise-buyer is the lack of one’s ability or interest in reading between the lines, and a general lack of foresight into understanding business-models, related industries, and the economy. There are facts that one needs to know before entering into a franchise model of which some are mentioned below.

Read the fine print

More known the brand, harsher could be the terms and condition for the franchise-buyer given that the seller knows its worth, and knows that there are others standing in the line where the present incumbent bows out. Issues like who would foot ...
... the cost of putting in place things like the infrastructure (shops, establishment, equipment etc) and who would look after their upkeep.

Know the history of the organization and the industry.

A franchise for the franchise seller is a business which the latter would try and milk to the extent possible which in some cases could mean obfuscating certain inconvenient facts and figures.

Clearly know the exit policy.

It is when things are pink ‘n’ rosy that the most contentious issues get ferreted out with ease which in the case of a franchise business is the knowledge of the latter’s exit policy.

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