Purchasing a franchised business can put you on the pathway to the American Dream. It’s a great way to get a head start on success if you select the right business and the right franchisor. Look at the track record of the franchise industry. According to the SBA over 92% of franchised business are still in business after 5-years. Compare this to independent business start-ups which have a reported failure rate in the 90 percentile during the same period. Is it any wonder why the banks prefer to finance franchised businesses?

While there are many examples of successful franchises, buying a franchise does not guarantee your success. Each year there are failures, both on the part of franchisors and franchisees. You as the franchisee are primarily responsible for the success of your business, but the franchisor has a responsibility to continue support your efforts beyond the trademark and unit opening, so you need to find out about the mutual obligations of the business before your get involved! 

Are you right for franchising?
A successful franchisee is a business person who will follow a prescribed system to the letter and will work hard to build up a local business based on the success of similar operations in other areas. By the nture of the business a franchisee cannot make unilateral decisions about operational procedures or which products and services will be offered. The Franchisee must be willing to work to build a sustainable brand and business for the benefit of the franchisor, the other franchisees, the community that they serve, and themselves.  

If you are an entrepreneur that wants to develop your own business because you have a “better idea,” don’t purchase a franchise. Instead develop your own franchise system based on a successful prototype that you create from scratch!

FranchiseRight provides advice, representation, and support to individuals and companies looking to purchase a franchise. Your FranchiseRight Certified Advisor can give you expert direction and guidance throughout the research, evaluation, selection, due-diligence, negotiation, financing, and pre-opening phases of franchising. If you decide to purchase a franchised business, we want you to achieve success more rapidly and exit profitably in a reasonable timeframe while you enjoy a business ideally suited to your preferences, management style, lifestyle, and financial goals.