The Process of Buying a Franchise

The history of franchising goes back to the Middle Ages but it 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 from fraudulent franchisors. However, the old Latin saying, "caveat emptor", or "let the buyer beware", still applies when it comes to buying a franchise.

How to Evaluate the Right Franchise Buying Opportunity for You

Before you buy a franchise or start selecting a home based business, we have outlined a simple process for evaluating a franchise buying opportunity. The process is not foolproof, and as the history of franchising has proven time and time again, misjudgments can still occur. However, following the process will help you avoid disastrous mistakes made by many other people buying into a franchise. The five steps which are explained will assist you in buying into a franchise or selecting a home based business 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