Write The Wrongs

There are many franchise opportunities out there, and almost every franchise brochure claims a "proven concept." But what works in New York may not play too well in Wichita Falls (have you seen any bagel shops close over the past few years?).

Look for depth in the management team and remember that running a single successful restaurant or chrome-plating business uses different skills than running a national-caliber franchise company. Really look at the financial statements of your franchisor and be assured it has the capital to do what it promises. Also make sure your family members agree to work with you on the venture and that you have their unbridled support. The last thing you need is someone saying "I told you so."

Finally, don't forget to measure the opportunity cost of taking on obligations, as you'll have little time for anything else when you own a business. This is especially true when things don't go as planned.

By golly, we've got it! Check out the Franchise 500 for the best franchises in the business.

Contact Source

• American Association of Franchisees and Dealers, (800) 733-9858, ext. 100, www.aafd.org

This article was originally published in the January 2001 print edition of Entrepreneur with the headline: Write The Wrongs.