Evaluating Franchise Opportunities. Management and Planning Series

摘要

The success rate for franchise-owned businesses is very high. According to studies conducted by the U.S. Department of Commerce from 1971 to 1987, less than 5 percent of franchised businesses failed or were discontinued in each of those years. However, success is not guaranteed. One of the biggest mistakes that you can make is to be in a hurry to get into business. If you take shortcuts on your evaluation of a potential business, you might neglect to consider other franchises that are more suitable for you. Don't be pressured into a franchise that is not right for you. Although most franchise operations are managed by reputable individuals, as in all industries, some are not. Also, some franchised businesses are poorly managed and financially weak. Resist pressure to purchase before you complete a thorough investigation. This publication is designed to assist you in investigating your options. It includes the questions you should ask to adequately evaluate the business, the franchiser, the franchise package and yourself as a franchise owner.