Most people focus on marketing materials…
Franchises like fancy brochures and when you visit the store in your area, you are probably going to be impressed with the new, trendy concept that just came to town.
But, what about the items you never see?
Can you read an FDD by yourself?
Has the Franchisor been involved in any litigation?
How many stores have failed in the past 12 months?
I recently sold an existing franchise to a new buyer in Southern California. He was thrilled with the new business. Sales were crazy, climbing each day and both he and his wife worked in the store on a daily basis.
Then, one day he called me. He was upset because the Franchisor decided not to open any more locations in Southern California. My buyer was demoralized and felt abandoned.
Who would support him and his business?
Support is one of the most important elements of the partnership between a Franchisor (Zor) and a franchisee. Without it, you are going to be like a fish swimming in a very big pond.
Had the franchisee cited above asked the questions we provided, he would have uncovered the fact that the company was going to concentrate their efforts elsewhere. But he didn’t.
Unlike in private business opportunity sales, you have a Franchise Broker at your fingertips. You have an asset ready to assist you in finding the right fit. You have free access to legal and financial help and these services are free.
Use these tools and resources to better help you to make a decision on what is right for you and your family.