Franchising can be a fantastic route into business ownership — offering the advantage of a proven model, brand recognition, and ongoing support. But it’s not a decision to take lightly.
Whether you’re exploring your first franchise opportunity or adding one to your portfolio, here are some key do’s and don’ts to guide your thinking.
✅ The Do’s: Set Yourself Up for Success
1. Do your homework
Research the franchise thoroughly. Look into its track record, market reputation, and financial performance. Speak to current (and even former) franchisees to get the full picture.
2. Read the fine print
Franchise agreements are detailed and legally binding. Always review the Franchise Disclosure Document (FDD) and consult a qualified franchise lawyer before signing anything.
3. Assess your fit
Not all franchises suit all people. Make sure the business aligns with your lifestyle, values, and skills — and that you’re passionate about what it offers.
4. Understand the costs
From initial investment to ongoing royalties and marketing fees, know exactly what you’re getting into financially. Ask for a full breakdown and prepare accordingly.
5. Check support systems
One of the biggest benefits of a franchise is support. Make sure the franchisor provides solid training, operational guidance, and marketing assistance — especially in the early days.
6. Speak to other franchisees
Their insights are gold. Ask about profitability, day-to-day challenges, and the level of support they actually receive. This will help you avoid surprises.
7. Plan your exit strategyWhether you intend to sell, scale, or pass it on — know the terms of renewal, resale, or termination from the outset.
❌ The Don’ts: Avoid These Common Pitfalls
1. Don’t rush in
Franchises can be exciting, but don’t let the pitch rush your decision. Take your time and be thorough.
2. Don’t skip legal advice
Franchise agreements are complex. Always get legal advice from someone who specializes in franchising.
3. Don’t ignore territory rules
Territory rights are critical. Understand whether you have exclusivity and what protections exist from competing franchisees.
4. Don’t expect autopilot
It’s not a plug-and-play operation. You still need to be present, engaged, and ready to put in the work.
5. Don’t forget to budget for the unexpectedAlways maintain a financial buffer — for slower starts, local marketing, or unexpected operational costs.
Final Thought
Investing in a franchise can be a rewarding journey — but it’s only as good as the preparation behind it. Make sure you’re not just buying into a business, but investing in a future you can see yourself building every day.
