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Tuesday, September 25, 2007

Top Ten Mistakes of Prospective Franchisees


Evaluating a franchise opportunity is a tricky business. Roger C. Rule, writing for Inc. Magazine provides this list of the top ten mistakes that people make when exploring franchise offerings:

1. Not reading, understanding or asking questions about the disclosure document.
2. Not understanding or having an inaccurate or incomplete interpretation of the franchise agreement and other legal documents to be signed.
3. Not seeking sound legal advice.
4. Not verifying oral representations of the franchisor.
5. Not contacting enough current franchisees.
6. Not confirming the reasons for failed franchises.
7. Not having enough working capital.
8. Not recognizing the need for financing, not knowing how to make a proper loan request and not developing a true and accurate financial statement.
9. Not meeting the franchisor's key management personnel at their headquarters and the field representative assigned to your territory.
10. Not analyzing your market in advance.

Be sure to check out the full explanations of the items in this list at the Inc. Magazine web site.

Related Posts:
Free Business Plan Templates
Low Cost Franchises

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