Have you heard about that new franchise opportunity that’s selling like hotcakes? What about the one that’s a sure thing? It sounds like a dream come true to find such a great franchise. But before you get seduced by all the PR and excitement of this franchise opportunity, stop and look at the numbers.
There are over 2,800 franchise investment opportunities to choose from. You might have a passion for sports, really love the food at a certain restaurant or even bored with your job. These are not the right reasons to invest your hard-earned money into a franchise, especially if that franchise is the next hot new thing.
A hot new franchise opportunity can seem like an attractive investment but some franchise systems may focus more on new franchise sales at the expense of growing their franchise network. If you’re considering investing in a franchise opportunity that’s growing quickly, make sure you do your homework and dig a little deeper before risking your money.
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
The most immediate consideration is usually how much is the franchise fee and other ongoing payments like royalty and advertising fees.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
A good consumer experience is not a reason to invest in a franchise. It skews the decision-making process of a prospective franchisee from start to finish.