Researching A Franchise

2. Check your interest level. It's not too late to back out.
3. Get professional help. At this point, it's time to call on an attorney and an accountant. Make sure, however, that you are prepared to purchase this franchise if they give you the green light. You don't want to pay them unless you are certain that this franchise is for you. Have your attorney, preferably one experienced in franchising, review the legalities of the offer. Then ask your accountant to review the franchise's financial statements-and your own financial situation.

Wanda Beard knows that such a research process can be tedious. The former account executive for Muzak spent a lot of time with current franchisees before purchasing a Uniglobe Network Travel franchise in Cypress, Calif., more than seven years ago.

Sure, Beard asked herself the customary questions about personal fit, legal documents, track record and corporate staff. But it was her interviews with franchisees that finally convinced her to buy into the system.

"We spoke to owners at different levels," she says. "I'm African-American, so I wanted to speak with a franchise owner who was African-American, a startup and one that had been around for a while. We had a series of questions for them that were very specific."

Those questions yielded some interesting answers - like the true amount of capital necessary to break even, support levels and pitfalls. Bassuk says that interviewing franchisees can also give you a chance to ask yourself some revealing questions.

"Look at the people who are doing particularly well and particularly badly," he says. "Then ask yourself, 'who am I most like?' You want to be like the people who are doing this business well."

* Next Week: The Ins and Outs of the UFOC

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