Some of you reading this booklet will be old hands on business matters, and these questions will merely serve as “touch stones” as you move through your selection process. For others of you, however, you may have intuitively understood the need for these questions, but were uncertain how to focus your exploration. Once again, these few questions are intended to guide and prompt you into further personal investigation, or what franchise experts call “due diligence.”
1. Do I have the requisite business skills to qualify me for an investment of this nature?
2. How much money do I have available to spend, and can I afford the financial risk of buying a franchised business?
3. How much money will it take to fully fund the purchase of a franchised business, including start-up costs and working capital for my first year business?
4. How can I find and qualify for financial funding?
5. What kind of support is really provided from the franchisor?
6. If my franchised business fails, what are my rights and what are the consequences for my long-term financial health?
7. Does the franchisor recognize and work with an independent franchisee association that represents the interests of the franchise owners?
8. Does my franchisor collectively bargain with its franchisees, and what is my franchisor’s reputation for fairness and support for its franchise system?
9. Has the franchisor earned the AAFD’s Fair Franchising Seal?
You may also want to consider a Personality Profile Assessment to assist you in assessing your business and personal interests, skills, strengths, and weaknesses.