Buying a franchise is like buying a business, there are always risks involved.
While purchasing a franchise can produce a strong return on investment, this is not always the case. It’s important that potential franchisees understand some of the dangers inherent in the franchise model.
Of course it’s vital to remember that each franchise buyer will have a different acceptance of risk, depending on their personalities and personal situations.
Here are 12 risks to consider:
- Choosing the right system
- High expectations
- Poor support
- Non-compliance
- Skimming the documents
- The business model
- Franchisor failure
- Fixed payments
- Selling the business
- Supply chain
- Lack of communication
- Restraints of trade
To read more about these dozen risks when buying a franchise, see the Jan/Feb edition of Inside Franchise Business out now in newsagencies. Want to subscribe? Click here.