How Do I Avoid Mistakes?

In the right circumstances, franchising reduces the risk of getting into business. Nevertheless, your process of investigation should be extensive and methodical. Most initial buyers will say, “I don’t even know what questions to ask.” If this is true for you, allow me to point the way for you.

Start now, and study up:

• Learn about franchising. Read books, attend seminars, etc, and become familiar with terminology. I can refer you to appropriate resources – see below.
• Examine your motives for going into business. Be realistic. Even the best franchises can test your patience during that first year of operation. If you aren’t particularly good at seeing things through, then franchise ownership will offer you coaching to help you stay on track.
• You will need the support of your family and should discuss your plans with them. In fact, most states require both husband and wife sign a franchise agreement so encourage your spouse to be part of your investigation process.  Remember, the biggest fear is the fear of the unknown.  The more your partner is engaged in the process, the more support you will receive.
• Study the concept — I will help you know what to examine, what to learn, what will work for your skills.
• Study the FDD — the Franchisor must provide you with a disclosure document that delineates all of the pertinent facts relative to their opportunity. If they do not offer you one before asking you to sign a contract, they are breaking the law. When you read it – read it as if you have been in business for two years. You will be amazed what a difference that makes.

Above all – turn your assumptions into questions so you get to the facts. You don’t want to say NO to a business based on what you think, rather than on what you know.

Suggested Readings:
Rick Dad, Poor Dad, Robert Klyosaki
The Go-Giver, Bob Burg
From Employee to Entrepreneur, Marvin Storm
The E-Myth Revisited, Michael Gerber
Having It All, John Assaraf
Street Smart Franchising, Joe Mathews & Thomas Scott