
July 2009
Watch for hazards when buying a franchise
With a franchise, you don't have to start a company from scratch. Whether the business sells fast food, automotive services, gourmet coffee, or dry cleaning, successful franchises are usually based on a proven business idea and a recognized brand name. The best franchisors can jumpstart a business by providing staff training, location advice, and detailed operations manuals. And some have ongoing relationships with financial institutions, which can help when you're searching for start-up capital.
But buying into a franchise requires careful analysis and a healthy dose of skepticism. Before taking the plunge, watch for these hazards: