The State Of International Franchising

Franchise Buying Checklist

Potential franchisees interested in buying a global franchise should keep the following tips in mind:

1. Investigate before investing. Understand what type of business you're buying and make sure it works in your particular market. Adaptation to your local culture is a must. Also keep in mind that it's easier and more cost-effective to introduce a new brand of something that already exists than to introduce a whole new product.

2. Get involved with a concept you truly like. Can you picture yourself in this business 20 years from now?

3. Consider the cost structure. What will it cost you to support sub-franchisees? What are your projected royalties? Will you be able to cover your costs and make a profit?

4. Visit the franchisor before buying. Make sure you clearly understand the franchise concept. Attend the franchisor training program. Also ask what sort of an infrastructure the company has to support overseas business. Does the company have the resources and staff to support you?

5. Talk to several companies in the same industry so you can make a good comparison.

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