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How to Choose a Franchise?

What should I pay attention to when choosing a franchise? To a lot of issues, but here are some FranchCamp contest recommendations that aim at helping people to find the business of their life.

Franchise selection checklist:
  1. First of all, while choosing your life's business, it is important to understand its ideology, values and vocation.
  2. Determine the daily functionality: what will compound your work? This should be fixated in a writing form and discussed at the very beginning. What to do, if something goes wrong with operating activities?  
  3. Study the advantages of your business and point out the differences from the competitors.
  4. Studying the business plan is highly important, because one of the main goals is earning money. You need to check: what business calculations are based on (traffic of a particular place, district statistics), whether all payments are included (taxes or rent may not be specified, etc.)
  5. Communication with the brand owner. You are a part of a team, led by the franchisor to a certain result. It is better to get to know each other personally, learn the stories of failure, and understand the motives for launching a franchise.
  6. Communication with franchisees, exchange of experience. You may be offered to talk to one franchisee, but it's better to communicate with others too: both those who have recently opened and those who are already working. What to ask? Have the expectations come true, is any help or support provided at launch etc.
  7. Legal review:
1) commercial concession agreement, license agreement
2) check the legal entity
3) check if the trademark is registered to this legal entity
4) terms of retention: if you terminate the contract, what will happen?

8. Explore yourself and your opportunities if you are no longer an entrepreneur. Questions that are useful to ask yourself:
Am I ready for changes?
Am I ready to do what I'm told?
Am I an entrepreneur or a top manager?
What is my financial cushion? How much money do I have in reserve if something goes wrong?
Perhaps, you need to talk to a coach to determine your actual goals.

9.Find your niche: see trends, learn what your city is lacking, interview as many friends as possible about the need for one or another business, analyze the purchasing power.