Key Questions to Answer before You Buy a Franchise

The right article can be a good start into an investigation on whether or not franchising is a good fit for you. The California Job Journal has published an article of key questions to consider, written by “The Franchise Expert, ” a franchise brokerage who hopes to sell franchises. It offers for consideration such questions as,

How would your franchise business be affected by economic ups and downs?

and

Will the franchise operation as a whole survive if there is a change of ownership or change of management?

The article is followed by another right below it, titled, “Franchises – Fact & Fiction.”

One, of course, needs to be very careful before one accepts the “facts” or what passes as reality in articles. When figures are given or statements made with no references, are they verifiable? With the aid of the Internet, they often can be tracked down or fleshed out in a very short time. For example, Fact # 10 in the second article:

According to the Federal Reserve, the average net worth of American families headed by an employee is $352,000. The average net worth of American families headed by a self-employed person is $1.96 million.

True. See page 58 in this 1,261-page Federal Reserve pdf, which is not linked to or referred to in the article itself. One could note that self-employed persons are probably statistically more likely to own independent businesses rather than franchises.

Read the two articles by clicking here.