Are you considering buying a franchise?
Babo Group taxation director, Michael Hymer, developed a list of items that need to be considered when choosing a franchise.
According to Hymer, before signing the Franchisors agreement, franchisees should be seeking advice from a proper financial or legal advisor, as well as considering the questions below.
Here is a quick test for you to discuss
Answer them quickly and then think out your response.
- Why am I considering this particular business franchise
- What are the short and long term rewards I hope to achieve from this
- How can I improve this franchise
- What personal sacrifices does my family have to make for this franchise
- What are my financial and personal risks
- Can I realistically achieve the expected business targets
- What will prohibit me selling this business to at least cover my costs
- Do I agree with the operational and ethical aspects of this franchise
- Will I be happy and wealthy
Does your response meet your expectations of the franchise or the promises they are making to you?