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How to Buy a Small Business Franchise

Kashmira Lad
Buying a small business franchise may not always be as complicated as it sounds. Here are some basic guidelines to help you achieve your dream.
Most large business ventures practice the method of franchising. It is an arrangement where one party, the franchiser, grants another party, the franchisee, the right to use its trademark or trade name as well as certain business systems and processes, to produce and market a good or service according to certain specifications.
The franchisee usually pays a one-time fee plus a percentage of sales revenue as royalty. The franchiser gains rapid expansion of business and earnings with minimum capital outlay.
It has proved to be a very useful model as it augments the growth of the company, and of course, generates more revenue and immediate recognition for the franchisee. Here, the franchiser still enjoys the major rights when it comes to managing the entire business.
If you are thinking about buying a franchise, you need to take into account many factors that can influence your decision in a big way. The franchiser can also help you in providing all the elements you need in setting up your venture.
Here, you may not have to worry about the interior decoration and the advertising strategies required. There is a standard to be followed, which is governed by the franchiser, and all franchisees need to comply. This type of business can help you earn better rewards rather than starting out with your own brand, where you need to start from scratch.


  • The most important thing would be to know your budget. It would help you understand which industry you should venture into and also, help you compile a list of franchises you may be interested in.
  • You must also check your knowledge on the domain. You need to know the benefits you can achieve by managing this business. This would require you to have a proper understanding of the industry, and the contract rules that are set by the franchiser.
  • The company may offer you assistance when it comes to providing you with the advertising and marketing strategies, the location, branding and decor, employee training, and other additional help you may require.
  • A professional would generally see to it that you enjoy all these benefits, as the company and you as well, can reap the rewards with proper planning and management.
  • Always ensure that you have an experienced attorney, who will guide you regarding the rules and regulations of the process. Ensure that you have a copy of the Uniform Franchise Offering Circular (UFOC).
  • It is very necessary that you go through this document and understand the terms and conditions. This would help you in the future and avoid any unnecessary misunderstanding between both the parties.
  • You must also visit the other franchisees of the business, to get a feel of the place. Here, you can even check the brochures and catalogs to study the kind of discounts being offered, and the various marketing strategies. Try to gauge the response and feedback from the consumers.
  • You can even opt to browse on the Internet and look at what is available. There are various guides that will assist you in going about it the right way. This will help clear all the doubts or even give you new ideas to consider.
  • Lastly, as this is a long-term investment, you must not be overly emotional about it. Approach the whole process with a clear mind and sound business logic.
Choosing the right small business opportunity to invest in is an important decision that can be overwhelming, but with some research, you can create that dream business you were looking for.