4.) Read The Franchise Disclosure Document Carefully
Once you’ve narrowed your choices, learn everything you can about the franchises that made the shortlist. This starts with the franchise disclosure document, which provides written information about every aspect of the franchise concept. “Many questions will be answered in the Franchise Disclosure Document (FDD), so read that carefully and be confident in asking clarifying questions you have about that material,” says Tim Courtney of Dream Vacations*. “Item 19 in the FDD shows your earning potential—if a franchisor does not include this in their FDD, ask them why.”
5.) Talk To Other Franchise Owners About Owning A Franchise
Research includes talking to franchise owners within the system. Ask them how they’re doing. Ask them about the ins and outs of the franchise. “Talk with other franchisees to gain a greater understanding of what in the business fulfills them, and what the business provides them personally, professionally and financially for their families,” says Noelle Burak of Two Men and a Truck.
And not just to current franchisees. Talk to former franchisees who left the system to find out why.
6.) Ask Questions Before Owning A Franchise
Lots of questions. Ask about any experience required, the cost to get into the franchise, the hours and personal commitment necessary to run the business, the franchise’s track record and the business experience of its leaders. Ask if you can reach out to the leadership team and visit the office. Ask about the support system they have in place for franchisees. “Make sure you’ll have the support you need down the road, not just when you get started,” says Mike Peterson of Garage Force*.