Deciding to purchase a franchise in Florida is a major decision. Once you have committed to it, these steps can help you purchase the franchise that is right for you.
A franchise gives you a great opportunity to run a business that already has customers, structure and operating plans.
Before you purchase a franchise, it is important to do your research. Explore many different franchise options and create a list of the ones in which you are most interested.
The Uniform Franchise Offering Circular
Request a Uniform Franchise Offering Circular (“UFOC”). This is a required document by the Federal Trade Commission and contains details about the franchisor’s history, your responsibilities as a franchisee and costs involved in running the franchise.
It is extremely important to thoroughly read this document. One of the sections contains information about any lawsuits or bankruptcies that the franchise has been involved in.
In addition to the UFOC, review all contracts with the franchisor carefully and ask questions on anything you do not understand.
Verify that the contracts do not contain any terms unfavorable to you. As a franchisee, you will be required to purchase inventory and meet sales goals, and you should make sure that these are realistic.
Tools to help you succeed
Sometimes people purchase franchises and find that they do not have the necessary training or knowledge of the business to successfully run the franchise.
Many franchisors provide initial and ongoing training and development for their franchisees to keep them educated and up to date on the business.
Learn about what types of marketing and advertising materials you will be able to use. Some franchisors allow their franchisees to use their existing materials and knowledge, while others do not, which can make running a successful franchise much harder.
By following these steps, you are more likely to choose the franchise that best fits your situation. Before deciding, it is best to have an attorney review any relevant documents.