Ever think about buying a business franchise? There are as many good reasons for not doing it as there are for taking the plunge.
Franchises are everywhere. There are literally thousands of franchises available in the United States, from Subway, McDonald's, Wendy's, and Burger King to Jiffy Lube, Good Feet, Yum Yo's Yogurt, Ace Hardware, Domino's Pizza, Real Property Management, and Merry Maids. Some franchises cost a ton of money, while others are relatively inexpensive. And there are franchises for almost every type of business, from fast food to fancy cars.
So how do you choose one that's right for you? Carefully, very carefully. First, you must do a tremendous amount of research into the available possibilities. Owning your own business can be very rewarding, but be sure you know what you're getting into, because it also can turn into a nightmare.
Your research should include financial, legal, and accounting aspects of potential purchases. Location is vitally important. Will your franchise be in an area that will provide sufficient customers to make it a financial success? The biggest questions--and the most important--are how much the business will cost, how much money you have, and how much money you can raise.
With all of that in mind, consider these six reasons, provided by Entrepreneur Magazine, why a particular franchise might be a good buy:
But here are six reasons why you may not want to buy:
If you are thinking about buying a franchise, we can help you make an informed decision and help you consider possibilities for raising sufficient capital to operate the business.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
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