Do you remember the last major purchase you made?
If so, would you describe it as being a smooth, easy process, or a difficult, frustrating one that infuriated you to no end?
If it was a smooth transaction, congratulations!
But if it wasn’t, and you happen to be thinking about buying a franchise-which is a major purchase, this article is for you.
3 Things That Infuriate Franchise Buyers
1. Too Many Choices
The number of franchises available is mind-boggling, especially if you’re just starting to search for the right one.
If you start your franchise search online, like most people do, you need to prepare yourself for what’s out there.
I’m referring to the hundreds of websites that offer “franchises for sale.” You can easily spend days on end scrolling through those websites and clicking on franchise ads.
If you’d like to save time, and lower your frustration level (because of all the choices you have) use the tips provided in this article.
2. Working With Sales Reps And Franchise Brokers
Most people don’t know how to buy a franchise. That means they must rely on the people who sell them to provide the information they need to make a buying decision.
The point often overlooked is the fact that franchise salespeople and franchise brokers only get paid when you say “yes.”
(Specifically, that’s when you agree to purchase the franchise, send in the necessary paperwork along with your check for the upfront franchise fee.)
That’s why it’s crucial for you to get information from other people involved in the franchise-specifically the franchisees who are already in the system. And the information they’ll share is the most important kind of information. Because it has to do with their earnings.
Important: It must be remembered that franchise salespeople can’t share franchisee earnings information unless it’s documented in their FDD. And even then, it’s rare to find anything but unit expenses, gross sales, or total revenue numbers. It can infuriate potential franchise owners who just want to know how much they’ll be able to make.
Bonus Tip: If the franchise opportunity you’re interested in discloses earnings in their FDD, share those numbers with the franchisees you call. Ask them point-blank if the figures disclosed are realistic.
3. Legal Mumbo-Jumbo
The FDD, (Franchise Disclosure Document) is a couple hundred pages of legal terms, financial information and other information. It’s not the most exciting thing you’ll ever read, but it’s a must-read if you’re buying a franchise.
From the Federal Trade Commission:
“Before you invest in any franchise, get a copy of the franchisor’s Franchise Disclosure Document (FDD) You must receive the document at least 14 days before you are asked to sign any contract or pay any money to the franchisor or an affiliate of the franchisor. You have the right to ask for-and get-a copy of the FDD once the franchisor has received your application and agreed to consider it.”
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