THE FIVE STEPS OF SELECTING A FRANCHISE

Franchising has been around since the Middle Ages but reached its economic apex in the 1970's in the United States. Franchising has been enjoying a resurgence that started in the late 1980's. The success of franchising has attracted some inexperienced and occasionally fraudulent franchisors. In 1979, the federal government implemented a law to protect consumers form fraudulent franchisors. However, the old Latin saying, "caveat emptor", or "let the buyer beware", still applies to the purchase of a franchise.

We have outlined a simple process for evaluate a franchise and protect your investment. The process is not foolproof, and misjudgments can still occur. However, following the process will help you avoid disastrous mistakes made by many other people. The five steps which are explained will assist you in finding a franchise that is a suitable match for you and has the potential for financial success.

Step 2 - Examine the Franchise and the Franchisor

Step 3 - Analyze and Evaluate the Disclosure Statement

Step 4 - Investigate the Franchisor

Step 5 - Make a Decision