Franchises are a significant portion of the economic structure in the United States. We should not ignore them as the right fit for some entrepreneurs. This said, know that the due diligence required for a franchise is as important as it is for an independent business. Often one needs more cash to buy the franchise and the handcuffs involved in ownership can be more restricting than a non-franchise business. So, before you get in, know what you are getting into. You need to know both how the current owner has been operating and the viability,costs, and services of the franchisor.
I just found this article about due diligence related to the purchase of a franchise. It is worth a read BEFORE buying a business under the franchise model.
An important consideration is how one is going to get out of a franchise relationship, just as you need to know how to get out of any contract.
The buyer, with whatever consultants they engage, is solely responsible for due diligence. Don’t count on what someone else surmises.
It must be national franchise week or some such. This just came across my desk as well. It is about the value of a franchise for sale. Take a look.