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Before Selecting a Franchise System

Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals. The following checklist may help you make your decision.

Your Investment

  • How much money do you have to invest?

  • How much money can you afford to lose?

  • Will you purchase the franchise by yourself or with partners?

  • Will you need financing and, if so, where can you obtain it?

  • Do you have a favorable credit rating?

  • Do you have savings or additional income to live on while starting your franchise?

Your Abilities

  • Does the franchise require technical experience or relevant education, such as auto repair, home and office decorating, or tax preparation?

  • What skills do you have? Do you have computer, bookkeeping, or other technical skills?

  • What specialized knowledge or talents can you bring to a business?

  • Have you ever owned or managed a business?

Your Goals

  • What are your goals?

  • Do you require a specific level of annual income?

  • Are you interested in pursuing a particular field?

  • Are you interested in retail sales or performing a service?

  • How many hours are you willing to work?

  • Do you want to operate the business yourself or hire a manager?

  • Will franchise ownership be your primary source of income or will it supplement your current income?

  • Would you be happy operating the business for the next 20 years?

  • Would you like to own several outlets or only one?