Checklist to Check Out a Franchise

Here are some of the fundamental questions that you need to ask yourself before you proceed to purchase a franchise.

  • Prepared for long hours - Am I prepared to put in the necessary hours to make this business succeed?

  • Support - Is my family prepared to support me and the time I have to spend in the office or factory where they may not see as much of me as they would like, in the first few months?

  • Income - Will this business provide me with the amount of income that I need to maintain my current lifestyle?

  • Age - Will my age permit me to run this business efficiently?

  • Experience - Do I have enough experience in business matters to be confident of running the business?

  • Manual - Am I prepared to follow to the letter a manual that has been developed by someone else?

  • Creative - Do I want to use some of my own creativity in the business or will that be a problem because a franchise generally does not allow me leeway to develop my own ideas?

  • Guidance - Can I accept guidance and direction from someone else?

  • Mix - Do I have the ability to mix with other people?

  • Financial - Is my financial position strong enough to enable me through the first year without relying on the success of my franchise business?

  • Image - Does the franchise have a good name and public image?

  • Staff - Am I confident in employing and managing staff?

  • Borrowings - Am I comfortable with the amount of money that I have to borrow to purchase this business?

  • Plan - Have I a plan in place in case it takes longer for the business to produce a cash flow that will meet the payments on the loans?

  • Education - Do I have the necessary educational background to lend itself to this type of business?

  • Confidence - Am I confident in running the business long enough in order for me to recover my investment?

  • Happy - Do I actually want to be in this type of business?

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