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Critical Caution!

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  • Do not sign any agreement without having it reviewed by your attorney and accountant.
  • Do not pay for any circular you request.
  • Promises made by a franchisor may not be binding unless included in the final franchise agreement.
  • Record ALL conversations with each franchisor -- include date, time, person talked to, promises, questions and their answers.
  • The UFOC does not mean the government has reviewed and/or approved your franchise.
  • Do not be pressured into signing an agreement:  It's in the salesman's interest to create a sense of urgency that may not be real.  Remember:  Trade shows and franchise brokers are in business to sell franchises.
  • Talk to lots of franchisees including those the franchisor doesn't recommend or who have recently left the system.  Include some in similar geographic areas, some who've been in business 3-12 months, and some who've gone through a renewal cycle and have been in the system for many years.
  • The Franchisor must give names of all franchisees who left the system in the past 3-5 years.
  • Never underestimate the start-up costs of getting into the franchise.  Make sure you have enough funds to carry you until the business makes a profit.
  • Don't assume that because a franchisor is a member of the International Franchise Association (IFA), it is a "reputable" franchisor.

 

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