Advance Work: Before You Select a Franchise System

Before you invest in a particular franchise system, think about how much money you have to invest, your abilities, and your goals. Be brutally honest.

Your Investment

  • How much money do you have to invest?
  • How much money can you afford to lose?
  • Are you purchasing the franchise alone or with partners?
  • Do you need financing? Where is it coming from?
  • What is your credit rating? Credit score?
  • Do you have savings or additional income to live on while you start your business?

Your Abilities

  • Does the franchise require technical experience or special training or education (for example, auto repair, home and office decorating, or tax preparation)?
  • What special skill set can you bring to a business, and, specifically, to this business?
  • What experience do you have as a business owner or manager?

Your Goals

Write down your reasons for buying a particular franchise:

  • Do you need a specific annual income?
  • Are you interested in pursuing a particular field?
  • Are you interested in retail sales or performing a service?
  • How many hours can you work? How many are you willing to work?
  • Do you intend to operate the business yourself or hire a manager?
  • Will franchise ownership be your primary source of income or a supplement to your current income?
  • Do you get bored easily? Are you in this for the long-term?
  • Would you like to own several outlets?

If you are considering buying a franchise, we invite you to visit our Small Business section for further insights.