In all seriousness, “Buyer beware” is excellent advice when considering any major purchase or investment – including the decision to buy a business or invest in a franchise.
Some free, unbiased advice:
- Look at two, preferably three, options so you have something to compare and contrast
- Consider all the facts, figures and disclosures in total.
- Study the Franchise Disclosure Documents (FDDs) for franchise comparisons
- FDDs are mandated by the Federal Trade Commission – this is serious business.
Case in point
If Franchisor X offers a fully developed, turn-key operation with local support for a $45,000 franchise fee, how does that compare with Franchisor Y who has a $35,000 franchise fee but requires a list of additional costs and obligations which brings their total to the same, if not more, than Franchisor X?
The only way to know is to dive into the FDD (Items 5. 6 and particularly Item 7) and compare the total cost of ownership.
To paraphrase the Capital One ads. “What’s in your FDD?”
Best wishes in your search for a franchise opportunity that brings you personal and financial success.