Before Selecting a Franchise System

Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals. The following checklist may help you make your decision.

Your Investment

• How much money do you have to invest?

• How much money can you afford to lose?

• Will you purchase the franchise by yourself or with partners?

• Will you need financing and, if so, where can you obtain it?

• Do you have a favorable credit rating?

• Do you have savings or additional income to live on while starting your franchise?

Your Abilities

• Does the franchise require technical experience or relevant education, such as auto repair, home and office decorating, or tax preparation?

• What skills do you have? Do you have computer, bookkeeping, or other technical skills?

• What specialized knowledge or talents can you bring to a business?

• Have you ever owned or managed a business?

Your Goals

• What are your goals?

• Do you require a specific level of annual income?

• Are you interested in pursuing a particular field?

• Are you interested in retail sales or performing a service?

• How many hours are you willing to work?

• Do you want to operate the business yourself or hire a manager?

• Will franchise ownership be your primary source of income or will it supplement your current income?

• Would you be happy operating the business for the next 20 years?

• Would you like to own several outlets or only one?