How To Research A Franchise Opportunity

Veronica Davis over at says there are so many franchises to choose from today. With any and all possible products and services as potential business opportunities, choosing the right one can be difficult. Finding a field that is enjoyable and profitable is the ideal situation, so here are some tips on making sure this is the case before making a decision.

Disclosure Document
The first step in gathering information once a prospective franchise is pinpointed is to request the Franchise Disclosure Document (FDD). The franchisor is legally required to provide it to those interested, so getting a hold of one shouldn’t be an issue. If this is a problem, that’s a sign that the franchise might be trying to hide something. Reading and understanding this document thoroughly is very important so a consultant or franchise attorney is recommended if it proves difficult.


Talking to the franchisor is the next step. Asking questions is the only way to get real information, making sure that elusive answers don’t move the conversation away from the facts. Finding out the company’s focus is important, because an investor should be sure the company regards the success of the franchisee highly. Statements that revert back to overall franchise profit or introverted ideas should send an alarm.

Another step in the process is getting information from the franchisees already involved. Questions should be asked that are geared towards the reality side of the business. Asking about the beginning of the process and what obstacles were encountered should reveal any big problems in the support system from the franchisor. Most importantly would be the financial aspects, investors shouldn’t be afraid to ask multiple franchisees blunt direct questions about the costs and expected incomes from their experience.

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