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- Evaluate your abilities and priorities before you begin your analysis of potential franchise opportunities.
- Know what you want to accomplish and obtain the rights for business you can afford.
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- Make the effort to determine the financial stability of the franchisor.
- Consider the size and availability of the franchisor’s management and support team – where are they located in relation to your franchise?
- Preparing a sound business plan is a key tool to arranging your financing, establishing your objectives and understanding your budgets.
- Design your own list to questions for the franchisor – avoid questions which prompt a “yes” or “no” answer.
- Seek out a lawyer and an accountant who specialize in franchising matters.
- Advertising programs by the franchisor are designed to promote the franchise brand – your own opinion is essential.
- The issue of non-competition is one of the most important legal issues arising when the relationship between the franchisee and the franchisor is over.
- A franchise lawyer can determine whether the terms of the franchise agreement are reasonable.
- Franchising is based in part on the notion that the owner operator brings enthusiasm, drive and dedication to their business.
- A franchise that has environmental waste will be subject to governmental regulations.
- The franchisor has the right to act in its own best interests or in the interest of the system as a whole.
- The three pillars of any business format franchise are the brand name, the operating systems and the on-going support.
- Ask yourself, if I were a consumer, would I shop or buy from this franchise establishment?
- Be absolutely sure and well versed with all the rules concerning purchasing, supply chain and proprietary products before your open the doors to your business.
- Bankers need to satisfy themselves that loans can be repaid adequately from the cash flow generated by the business.
- Hiring, training and motivating employees become a key component of good business strategy.
- Proper motivation starts by ensuring your employees understand what is expected of them.
- It is essential to understand and be comfortable with the arrangements for your first location.