What are the key things you need to know at the very least, to quickly understand if the franchise you are considering is a good one for you?

Peter Knight is the Franchise Account, and he has advised countless people around their franchise investment, and he zeroes in on 5 key things to know.

You have so much information coming at you if you’re considering investing in a franchise.

There is so much documentation placed in front of you, that it can feel overwhelming on where to start, which is something w know leaves people shortening their due diligence to just get a deal done faster.

We asked Peter Knight to give some thought to, and spell out in detail, five things you must know to figure if a franchise is a good investment for you. A good investment someone else, may still not be a good investment for you personally.

In the discussion, the key things are broken into;

• How much is the franchise going to cost
• How much can I earn
• Can I afford it
• Is the franchise business a good fit for me and my lifestyle
• Do you like and trust the franchisor, the person you are getting into business with

These are the questions covered in detail and put into context for your decision making process.

 

0:00 Intro

0:21 5 important points encouraging people to think through in a structured manner

0:53 First thing to know - how much is the franchise going to cost

2:48 Additional components to cost is not just the ‘up-front’ purchase cost, but also the ongoing costs

3:38 Second thing to know - how much can I earn

5:19 The ‘how much can I earn’ question differences between a new franchise and an existing franchise

7:08 The frustrations people have with franchisors not answering ‘how much will I earn?’ question

8:30 Third thing to know - can I afford it

10:39 Structuring finance for a franchise deal

12:06 Fourth thing to know - Is the franchise business a good fit for me and my lifestyle

13:53 The importance of days in the field and talking with franchise owners BEFORE they buy the franchise

15:17 Fifth thing to know - do you like and trust the franchisor, the person you are getting into business with

17:47 Ignoring red flags and separating the emotion from the purchase of a business

19:03 Wrap up

 

Podcast Produced by: www.magneticbusinessmedia.com.au

 

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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