Buying A Franchise
From Smallbusinesslibrary
Buying a franchise is often seen as an attractive alternative to starting up your own small business, yet there are still many pros and cons to buying and operating a franchise. It is necessary to research first whether franchising is the right option for you, and then what type of franchise you are interested in buying.
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Is Franchising Right For You?
Here are some resources to help with the deciding whether or not franchising is the best option for you:
Franchising Definition (Wikipedia)
Wikipedia’s entry on franchising is a straightforward overview of franchising and the different types of franchises that exist.
Franchising Opportunity or Small Business Opportunity? Evaluating Franchise Opportunities Versus Small Business Opportunities (Nuwireinvestor.com)
This article has an overview of many of the pros and cons of buying a franchise, including the reduced risk in investment of owning a franchise in comparison to the higher risk, but more potential for a higher rate of return in starting a business.
Introduction to Franchising Course (SBA.gov)
This free online course from SBA.gov provides an overview of what franchises are, how to decide if franchising is right for you, and provides insight on how to go about choosing a good franchise for yourself. It serves as a thorough introduction to the world of franchising.
Should I Buy a Franchise? (SCORE.org)
This article from SCORE discusses many of the issues that one must consider before buying a franchise, including whether or not running a franchise, which may be more constricting than operating your own business, is for you.
Ten Good Reasons Not to Buy a Franchise (Nolo.com)
This article provides a list of ten reasons some people may want to reconsider buying a franchise, including the possibility of questionable profitability, high start up costs, and lack of legal recourse.
Choosing A Franchise
Once you have decided that you are interested in buying a franchise, it is also important to thoroughly research the franchise options that are available to you. Here are a few resources that can help when choosing which franchise you are interested in opening.
2008 Top 500 Franchises (Entrepreneur.com)
This is a compilation of the 500 top franchises as listed by Entrepreneur Magazine. Entrepreneur provides many resources to potential franchisers, which can be found elsewhere on their site.
2008 Fastest Growing Franchises (Entrepreneur.com)
The fastest growing franchises in the US in 2008, according to Entrepreneur Magazine.
AllBusiness Franchise Directory (Allbusiness.com)
This is a directory of franchises and allows you to search by industry, location and liquid capital you are willing to invest.
Evaluating Franchise Opportunities (SBA.gov)
This detailed document from the SBA provides advice on what to consider when weighing your options for choosing a specific franchise. It provides questions to ask when discussing the terms with a specific franchisor.
