2.   Advance Work:  Before You Select a Franchise System

Before you invest in a particular franchise system, think about how much money you have to invest, your abilities, and your goals. Be brutally honest.

Your Investment

• How much money do you have to invest?
• How much money can you afford to lose?
• Are you purchasing the franchise alone or with partners?
• Do you need financing? Where’s it coming from?
• What’s your credit rating? Credit score?
• Do you have savings or additional income to live on while you start your business?

Your Abilities

• Does the franchise require technical experience or special training or education (for example, auto repair, home and office decorating, or tax preparation)?
• What special skill set can you bring to a business, and, specifically, to this business?
• What experience do you have as a business owner or manager?

Your Goals: Write down your reasons for buying a particular franchise

• Do you need a specific annual income?
• Are you interested in pursuing a particular field?
• Are you interested in retail sales or performing a service?
• How many hours can you work? How many are you willing to work?
• Do you intend to operate the business yourself or hire a manager?
• Will franchise ownership be your primary source of income or a supplement to your current income?

• Do you get bored easily? Are you in this for the long-term?

• Would you like to own several outlets?