Tips for Buying a Franchise

Make sure your franchiser will provide adequate training. This is a great advantage of buying a franchise for business novices - you get a crash course in all of the knowledge you need to run a business without having to learn it yourself through trial and error over many years.

Buy a franchise offering tried and tested products and services. (Remember your goal is to be successful in business so that you can build a track record to impress the NZIS. Unless you are absolutely certain of success, it's best not to gamble on untried business concepts.)

Consider whether you are ready to take on the responsibilities of starting and running your own business and whether your spouse and family will be supportive.

Buy a franchise doing something you enjoy.

Buy a franchise you can afford without over extending yourself through borrowing too much money.

Buy a franchise you believe will be successful and that you can add value to. Remember, it's your intention to sell it and you don't want to sell at a loss.

Make sure you are fully aware of how you will be able to sell the franchise when you are ready to move on. Will you be able to sell it to the highest bidder or will the franchiser insist that they are given first refusal?

Buy a franchise in which you have met other franchisees who are happy with the training and the business they are now running.

Establish that the franchisers, the people selling the franchise, can make good their claims about profitability. There is a known tendency for some to exaggerate potential earnings - remember, they want you to buy their franchise.

Find out what will happen if you do not make the profits predicted. Is there a clause for the franchiser to take back the franchise?

Ensure that you have an exclusive territory. You don't want to find, after handing over your money, other people next door offering exactly what you are offering to your customers.

Make sure that your location will provide you with enough customers to make your franchise a viable one.

Find out as much as you can about every aspect of the franchiser and the franchise before handing over your money.

Don't buy a franchise from cowboy operators. They'll generally try to get you to sign up in a hurry because they would prefer you did not thoroughly research their track record. Again, remember, your task is to find a solid franchise opportunity to facilitate a LTBV to New Zealand. You will impress nobody by falling for smooth-talk from snake-oil salesmen.

Don't pay such a high royalty on your sales that there's little profit left over for you.