Top 10 Tips for Buying a Franchise in 2024

Identify Your Business Skills:

Before delving into the franchise discovery process, assess your unique set of skills. Are you a sales guru, marketing maestro, or an operations and management expert? Tailor your search for franchise opportunities that align with your strengths to maximise your chances of success.

Embrace the System:

Understand that in franchising, you’re investing in a license, granting you access to the franchisor’s proven business system. You need to feel comfortable about following other business’s established rules and procedures. Embracing the system is crucial to franchise success.

Gain Family Support:

Acknowledge that opting for a franchise is a decision that involves the entire family. Openly discuss the time commitments and address any concerns your family may have, particularly those related to financial investment.

Assess Your Net Worth:

Conduct a net worth statement by subtracting your liabilities from your assets. This not only helps set a budget but is also a requirement for franchise sales representatives to determine your financial eligibility.

Connect with Franchise Owners:

When exploring franchise opportunities, engage with as many franchise owners as possible. Spend time with existing franchisees to gain a first-hand perspective. Conduct thorough research, speaking to both satisfied and dissatisfied franchisees. Begin crafting your franchise business plan during this stage. A great place to start is by attending the Franchise Exhibitions. 

Thoroughly Review the FDD:

Carefully go through the Franchise Disclosure Document (FDD), a legal document sent by the franchise company. Take notes, prepare questions, and seek clarification from the franchise company representative. Address concerns with a franchise lawyer, a crucial investment in your franchising journey. We, at Franchising Guru, provide legal support to franchisees

Embark on Discovery Day:

After narrowing your options, invest in visiting the franchise company’s headquarters on Discovery Day. This is an opportunity to meet executives and the support team. Remember, franchising is a collaboration, and this visit is a crucial step in the process.

Post-Visit Reflection:

Upon returning from Discovery Day, review your notes to ensure nothing is overlooked. Hire a franchise solicitor, or speak to us at Franchising Guru, to review the FDD and franchise agreement, offering valuable insights. Additionally, enlist the expertise of an accountant or a financial advisor to assist with financial aspects.

Gut Check Time:

After gathering data, including family input, franchise owner perspectives, and professional advice, it’s time for a gut check. Assess if the data aligns, if the opportunity feels right, and if your family stands behind you. If everything adds up, move forward confidently.