Things to Consider Before Purchasing a Franchise

You should consider the following issues before committing to any purchase:

  • Are you willing to work within the limits and operating structure of the franchise system?
  • Is the product or service to be offered something which you enjoy dealing with?
  • Have you evaluated the market for that product or service?
  • Have you read the franchise disclosure document and resolved any questions which have been raised?
  • Can you arrange for sufficient working capital to offset periods of negative cash flow while the business becomes established?
  • Do you have a business exit strategy and do the franchise agreement terms conflict with it?
  • Have you learned as much as you can from existing and past franchisees about the system under consideration?
  • Have you negotiated the most favorable terms for acquiring or leasing a commercial business premises?
  • Have you sought independent legal and financial advice about the business relationship you are about to enter into?
  • Have you explored the formation of a business entity to help avoid owners’ liability for third party claims against the business?
This entry was posted in Articles and tagged , , . Bookmark the permalink. Trackbacks are closed, but you can post a comment.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*

  • Stephen M. Feidelman, P.A.
    Mailing Address:
    3389 Sheridan St., PMB #244
    Hollywood, Florida 33021

    Broward: 954-927-2889
    Miami-Dade: 305-931-4100