People looking to buy a franchise business often want to know:
• What’s the franchise failure rate?
• What’s the success rate?
• How many franchisees are satisfied with their franchisors?
• How many franchisees are earning at least $150,000 a year?
• How many franchisees, if given the chance, would choose to buy their same franchise again?
All good questions, but the answers to those questions are irrelevant . . .
First I want to tell you that no one knows the answers to those questions about franchising because the data is almost impossible to collect. Anyone who claims to know the answers isn’t telling you the truth. But even if you knew the answers to those questions it wouldn’t matter. The answers might be insightful, and if they were favorable, they might help you feel more secure about franchising, but so what? None of the answers to those questions, or most other generalized questions about franchising, provide any useful information that will help a prospective franchisee succeed. Let’s assume that you learn that 95% of franchises survived in the USA, and 5% failed. If you then purchased a franchise that failed, what good did that information do you? Wouldn’t you rather have known how to buy a franchise opportunity that would at least survive? How about one in which you could succeed?
As a prospective franchisee, your intention is to acquire a specific franchise opportunity. You’re not buying franchising in general – you’re investing in a specific name or brand. You want to learn everything you can about the specific company you intend to buy, including:
• How many of the company’s franchisees succeed?
• How many of the company’s franchisees are satisfied with the franchisor?
• How many of the company’s franchisees earn at least $150,000 a year?
• How many of the company’s franchisees, given the chance, would buy this same franchise again?
You want to know all those answers, and more!
And how do you get those answers? That’s where Buy “Hot” Franchises Without Getting Burned is invaluable. The book includes a series of checkpoints that anyone can use to explore and evaluate franchise opportunities. If you enjoy following a plan that will help you gather information so that you can make an educated decision, then you will love this book. The book presents a logical system that’s designed to help people make important decisions about investing in a franchise opportunity. Each of the checkpoints introduces an important idea, concept, or suggestion about franchising. Collectively, these are the points you need to consider before investing in a franchise. It doesn’t matter where you begin in the book. What matters is that you complete all the checkpoints.
Buy “Hot” Franchises Without Getting Burned will help you:
1. Understand what franchising is all about before investing your money.
2. Evaluate the pros and cons of becoming a franchisee.
3. Get free assistance from a variety of resources.
4. Know how to investigate franchise opportunities that appeal to you.
5. Read and understand the Franchise Disclosure Document.
6. Protect yourself by knowing your rights as a prospective franchise.
7. Know what to ask franchisors before you invest.
8. Get a list of franchisees to call and visit before you invest.
9. Make sense of the initial franchise fee.
10. Understand franchise fees, including the royalty and marketing fees.
11. Test your personality to make sure you’re a good fit for a franchise.
12. And much more!
And, of course, if you buy a “hot” franchise, the checkpoints in this book will help protect you from getting burned!
Author Dr. John P. Hayes has worked in the franchise community since 1979 and has been a franchisee, franchisor, and advisor to franchise companies worldwide. For more than 25 years he has taught The A to Zs of Buying a Franchise at the International Franchise Expos, sponsored by the International Franchise Association.