If you’ve been thinking about buying a franchise but aren’t sure where to begin, the Federal Trade Commission has a fantastic guide to help get you started. This extensive overview answers many of the questions that most first-time franchise buyers have about the buying process. Some of the most popular topics include:
The Franchise Business Model
Most people are familiar with franchising but may not truly understand what a traditional franchise business model looks like or how it functions. The FTC guide covers everything from common costs associated with franchising, what sort of controls the franchisor typically holds over the franchisee, and what commonly makes up a franchise contract including the obligations of both parties.
Is Franchising Right for You?
The Consumer’s Guide to Buying a Franchise also helps you determine whether you should even consider buying a franchise in the first place. Offering a variety of questions for self realization and reflection, the guide helps you figure out whether franchising is really a good fit for your business goals.
Selecting a Franchise
The guide includes a multitude of ways to search out great franchise opportunities, and also helps you through the decision making process. It covers important topics like demand, competition, name recognition, and much more. Emphasizing that the franchise needs to be viewed in the same way you’d view any other investment, the FTC gives you the insight needed to accurately weigh potential risks against future rewards.
The Franchise Disclosure Agreement
Stressing the importance of thoroughly reviewing the Franchise Disclosure Document (FDD), the guide helps you navigate the information normally contained therein. The FDD contains important information that needs to be disclosed at least 14 days before you’re asked to pay any money to the franchisor or sign a contract.
You can check out the complete Consumer’s Guide to Buying a Franchise on the Federal Trade Commission’s website by clicking here. To apply directly for iDropped’s franchise opportunities, please contact one of our representatives.