The uncertainty of today’s job market is encouraging more people to open a small business.
While investing in a franchise may look like an attractive way to become your own boss, be sure you fully research any franchise proposal â€“ and clearly understand the risks involved â€“ before finalizing an agreement.
The Washington State Department of Financial Institutions has issued an advisory for potential franchisees to alert them to important considerations before investing in a franchise.
“The first step before investing your money in any security or business venture is to do your homework,” Bill Beatty, the department’s director of securities warns. “For franchise investors, this means, at a minimum, reviewing the franchise disclosure document and getting in touch with current and former franchisees. You should be very skeptical if earnings for existing franchises are not disclosed and if experienced franchisees are unhappy or unreachable.” Read full post.