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.

1. Why am I considering this particular business franchise
2. What are the short and long term rewards I hope to achieve from this
3. How can I improve this franchise
4. What personal sacrifices does my family have to make for this franchise
5. What are my financial and personal risks
6. Can I realistically achieve the expected business targets
7. What will prohibit me selling this business to at least cover my costs
8. Do I agree with the operational and ethical aspects of this franchise
9. Will I be happy and wealthy

Does your response meet your expectations of the franchise or the promises they are making to you?