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Choosing a franchise is like picking a mate. You look initially at what catches your eye. Then you scrutinize character and personality. You listen to what friends and family members have to say. Then you hold your breath and hope for the best.
"I didn't know anything about franchising," he admits today. "I had to sign this big document. I didn't know what I was signing, but I signed." He and the company loved each other so much that he eventually became the largest franchisee in the system with 23 stores. Although he later sold out when Mrs. Field's bought the company, he just can't stay away. He's planning to open several new locations under the reorganized company. Cohen is one of the lucky ones. Many people rely on gut instinct when they purchase a franchise. They invest their time and money, only to find themselves embroiled in a lawsuit with their franchisor several years later. Encroachment, lack of support and discrimination are just some of the problems that can escalate into a lawsuit. Many franchisees just aren't successful because they find out too late that they don't like the product or service, or they don't get along with the people in the home office. Want to be one of the lucky ones? Here are a few questions that the International Franchise Association (www.franchise.org) says you should ask. 1. Will I enjoy the franchise? Before you even consider a particular franchise, make a list of your interests and the work you enjoy. That will serve as the basis of your franchise profile. Consider only franchise systems that fit that profile. Ask yourself if you will enjoy selling a franchisor's product or service for the next 10 to 15 years. If not, find another system. 2. Have I carefully studied all legal documents? Franchisors are required by law to put together a Uniform Franchise Offering Circular. This document, which lists legal information and details of the corporation and its principals, must be made available to prospective franchisees. It includes the contract that the franchisee signs. You and your attorney should study it carefully. 3. Does the franchise have a good track record? Get to know the company's top executives. What are their business backgrounds? What role did they play in the franchise's success or failure? The UFOC includes the company's financial information, so that's a good place to start. Have your account review it with you. A new franchise could provide an opportunity to get in on the ground floor of successful company. But remember that such a company may not have the experience necessary to build a winning concept. Go To Page: 1 2
The copyright of the article Courting a Franchise System: How to Pick the Right One in Franchising is owned by Michele Marrinan. Permission to republish Courting a Franchise System: How to Pick the Right One in print or online must be granted by the author in writing.
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