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Home » Random-Articles » 3411.TXT
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plr article line 1 A CHECKLIST OF QUESTIONS TO ANSWER BEFORE YOU BUY A FRANCHISE plr article line 2 plr article line 3 Franchise businesses such as Wendy's, McDonald's and Jack-In-The-Box are booming. The people setting up franchise ideas and businesses know a good thing, and are really promoting this idea. Franchises for just about every conceivable kind of business are being sold in ever increasing numbers. plr article line 4 plr article line 5 Some franchises are very good. They treat both the franchisor and the franchisee very well. Others are very one-sided. Still others are almost total rip-offs that trap one into paying ten to fifty times the actual value of the business idea, equipment, or whatever it is they are trying to get you to buy. plr article line 6 plr article line 7 Before putting any money into a franchise, you should investigate everything completely. We've prepared a list of questions you should be asking, and should get satisfactory answers to before investing. plr article line 8 plr article line 9 1. Has your attorney studied the franchise contract, discussed it completely with you, and do you both approve it without reservations? plr article line 10 plr article line 11 2. Does the franchise require you to take any steps which are either illegal or even border on illegal, or are otherwise questionable or unwise in your state, county or city? plr article line 12 plr article line 13 3. Does the franchise give you an exclusive territory for the length of the franchise period, or can the franchisor sell a second franchise in your territory? plr article line 14 plr article line 15 4. is the franchisor connected in any way with any other franchise company handling similar products or services? plr article line 16 plr article line 17 5. If you answered yes to the above questions, what is your protection against the second franchising company? plr article line 18 plr article line 19 6. Under what circumstances can you end the franchise contract, and at what cost to you? plr article line 20 plr article line 21 If you sell your franchise, will you be compensated for your goodwill or will it be lost to you? plr article line 22 plr article line 23 plr article line 24 8. How many years has the firm been offering you the franchise been in operation? plr article line 25 plr article line 26 plr article line 27 9. Does the company offering you this franchise have a reputation for honesty and fair dealing among its franchisees? plr article line 28 plr article line 29 plr article line 30 10. Has the franchisor shown any certified figures indicating exact net profits of one or more of its members, and have you personally checked the figures with these people? plr article line 31 plr article line 32 plr article line 33 11. Will the franchisor assist you with: a) A management training program; b) An employee training program; c) A public relations and advertising program; d) Capital; e) Credit; f) Merchandising ideas? plr article line 34 plr article line 35 plr article line 36 12. If needed, will the franchisor assist you in finding a suitable location? plr article line 37 plr article line 38 13. Is the franchising firm adequately financed so that it can carry out its sated plans? plr article line 39 plr article line 40 14. Does the franchisor have experienced management, trained in depth? plr article line 41 plr article line 42 15. Exactly what can the franchisor do for you that you cannot do for yourself? plr article line 43 plr article line 44 16. Has the franchisor investigated you carefully enough to assure itself that you can successfully operate a profit to both of you? plr article line 45 plr article line 46 17. Does your state have a law regulating the sale franchises, and has the franchisor complied with that law to your satisfaction? plr article line 47 plr article line 48 18. How much equity capital will you need to purchase the franchise and operate it until your income equals your expenses? plr article line 49 plr article line 50 If you can get the answers to each of these questions, and those answers satisfy you, then you're probably thinking about buying a pretty good franchise deal. However, if you're in doubt about any of these points, be sure to check it out and know the answers for certain before you invest or sign anything. plr article line 51 plr article line 52 Buying a franchise can give you a measure of security, and in some cases, sure-fire profits. Business surveys show that fewer than 20 percent of all franchised businesses fail. This is in comparison to a 60 to 80 percent failure rate for ALL new businesses started in this country each year. plr article line 53 plr article line 54 Information regarding specific franchising ideas can be found in the franchising directories, which are generally available at the local library. Often there will be a notice posted in franchise outlets themselves. plr article line 55 plr article line 56 If you can afford the entry into this business, statistics are on your side. You are now armed with some CAUTION and STOP and GO signs! plr article line 57 |
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