In a recent web watch post on the Wall Street Journal Online readers (including franchisees and franchisors) are provided with online resources that may be useful when considering purchasing a franchise.
The list includes the following sites that are definitely useful for prospective franchisees:
- Federal Trade Commission's Franchise Rule – The FTC's Franchise Rule is a 144-page compliance guide which contains information to ensure franchisors are meeting the FTC's requirements for them. This online web document provides information on issues such as franchisee-franchisor relationships‚ section-by-section information required in disclosure documents‚ financial disclosure requirements‚ and much more;
- Federal Trade Commission's Bureau of Consumer Protection Guide – This online resource was created for prospective franchisees to learn about topics such as the expenses of buying a franchise‚ what the initial franchise investment often includes‚ royalty fees‚ advertising fees and much more information about what to expect as a franchisee;
- Franchise International – Franchise Development Services Ltd. created the Franchise International site to provide prospective franchisees with news and trends about international franchising.
These sites are great but keep in mind that they are just "reference tools" and just some of the many resources that prospective franchisees should be evaluating. Before investing in a franchise (or any business) "due diligence" is critical. Ask questions‚ consult with the right professionals and understand that purchasing a franchise will impact every aspect of your business and personal life.
For additional information about buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" or to schedule an appointment call 1-800-976-4904.