1. Most new franchise owners don’t have cash up front when they purchase a franchise in a well-established brand – plan how you intend to finance your purchase well in advance.
2. Many franchise buyers spend way too much money on legal and accounting advice when buying a franchise – get specialist advice on how to save money in this area as it is very achievable.
3. Approaching your local bank direct about franchise finance can often result in an unnecessary knock-back – once again, specialist advice on franchise lending is critical to success.
4. Paying a fair price for a franchise business can be difficult to work out – do your research on the formulas that determine a fair price for your business.
5. When searching for the best franchise for you, start with a clear idea of the minimum income you want to earn – then contact the franchise brand and ask if the model can deliver that income!
Steve Finn wrote this article. Steve is an advisor to Franchisors, Franchisees, and Potential Franchisees and the founder of Australia’s only national franchise broker network.