Go In With Eyes Open And Understand Potential Pitfalls Before Buying Into A Franchise

NEWS.com.au:

Buying into a franchise could be risker than you think with experts suggesting setting up shop is a big mistake for some.

Owning a franchise has given thousands of people the chance to become their own bosses.
But people need to be clear about what they are getting into when they buy into a franchise.

“I think the starting point is that people need to understand there is a difference between having a job and having a business opportunity,” Mills Oakley Lawyers partner Warren Scott said.

Mr Scott, who specialises in franchising, said franchisors faced a dilemma. The baby boomers were often cashed up but often did not fit their profile of a potential franchisee.

“All the franchisors see excellent people who are Gen X and Gen Y and they are perfect for the franchise system, but they have no money.”

Mr Scott said given Australia had experienced low unemployment, franchisors struggled to find the right people.

He said people with a payout at the end of their careers needed to understand the business risk they were taking on.

And at that stage of their lives they may not be in the workforce to rebound from any financial problems, he said. Read more.

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