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The excitement of buying your franchise can have a major drawback: you get so into what you're doing that you end up making a common but avoidable mistake. Read on to discover three common mistakes people who are new to franchising make so you can dodge those bullets.
Skipping due diligence:
As a franchisee, you’ve got to leave no stone unturned during the research phase. The burden is on you to check everything out before you make a commitment. Evaluate the need for your service or product around your location, and make sure the competition isn’t too stiff. Confirm all of the promotional material you’re given and don’t take everything the franchiser says at face value. Speak to other franchisees about their experiences and get a franchise attorney to review all of the paperwork before you sign.
Not checking costs:
Your best chance at success relies on your understanding of all of the costs and expenses involved in your franchise. If you know exactly what you’re getting into financially, you’ll be in a good position to weather any storms and plan for your franchise accordingly.
Check over all the costs associated with your franchise, and don’t skimp on the lease. Review all of your lease terms in detail and negotiate as much as possible to get the best deal you can. Don't be afraid to ask questions if you're not certain about what the true price tag of your franchise is, and evaluate your own financial situation to ensure you're not getting in over your head.
Expecting to run the whole show:
Franchises offer a great advantage because you’re getting an established brand with research, support and training behind it. As a franchisee, you’re expected to work with the franchiser’s system to reap all those benefits. You will have some leeway, the amount of which depends on your franchiser, but you should familiarize yourself with the rules so you’re ready and able to work in the system.
Buying into a successful franchise isn’t a guarantee of success, but you boost your chances by simply avoiding some common mistakes. Homework is your best friend when it comes to franchise buying, so be ready to sharpen those pencils!