What Are Basic Questions To Ask Before Buying a Franchise?

Every potential franchise owner should ask 10 financial questions, says the head of FranChoice. Those questions:

1. How much total investment will this franchise require?
2. How much will I need in operating capital reserves to cover losses after opening the franchise until it reaches the breakeven point in terms of cash flow?
3. How much extra cash do I need to cover living expenses while I'm starting my franchise?
4. How long will it take my new franchise to reach break even?
5. How much of my total investment (including capital reserves) do I need to have in cash?
6. What standard financing options exist for me?
7. What alternative financing options exist for me?
8. How much money can I make in this franchise?
9. What are the ranges in financial performance of the existing franchisees?
10. How financially strong is the franchise company?

Read  Entrepreneur magazine's interview of  CEO Jeff Elgin,