Buying a business involves investing your time and money. Here are some tips you need to read before seeking a franchise. 

Seek advice

If you don’t completely understand your franchise agreement, don’t sign the dotted line. Show the agreement to a lawyer and get advice. If the franchisor provides financial information, discuss the figures with an accountant or business adviser.

Seek research

Although a recent report by Griffith university reads that fewer than 20 percent of franchisees and independent small business owners really understood the term ‘due diligence’, it doesn’t mean you should fit that statistic. Doing research will cost money, but if you are about to make a big investment in a brand, you need to do it justice with sufficient research. Seek independent legal, accounting and business advice from professionals.

Seek other franchisees

Think of this as an eyewitness account. Speak to as many existing franchisees as possible to gain an insight into the system and to hear it firsthand from those on the ground. Ask current franchisees if they are earning as much as they expected. Ask former franchisees why they left the system. The disclosure document is required to include the contact details of current franchisees and some past franchisees.

Seek training

It doesn’t hurt to know your stuff, and doing a franchising course will help you make an informed decision. There is a free online education program funded by the ACCC and run by Griffith University. Sign up to the program now.

Seek your passion

They say 'do what you love and the money will follow.' So make sure your choice of franchise category or brand is something you are interested in and would be willing to burn the midnight oil for if required.