s of Franchising – Question 9 WHAT SHOULD I CONSIDER BEFORE BUYING A FRANCHISE?
Among the points which IFA recommends for investigation are: a. the type of experience required in the franchised business; b. a complete understanding of the business; c. the hours and personal commitment necessary to run the business; d. who the franchisor is, what its track record has been, and the business experience of its officers and directors; e. how other franchisees in the same system are doing; f. how much it’s going to cost to get into the franchise; g. how much you’re going to pay for the continuing right to operate the business; h. if there are any products or services you must buy from the franchisor and how and by whom they are supplied; i. the terms and conditions under which the franchise relationship can be terminated or renewed, and how many franchisees have left the system during the past few years; j. the financial condition of the franchisor and its system. Both the Federal Trade Commission (www.ftc.gov) and IFA (www.franchise.org ) have many helpful publications
