Buying a Franchised Business is often seen by franchisees as a definite path to making large sums of money.
This may be true for some; however, there are a number of inherent risks in buying a Franchised Business for potential franchisees, which must not be ignored. These risks must be assessed, weighed up and considered in the overall decision of investing into a business.
Unreasonable expectations
Franchisees often have extremely high expectations of the business they are buying, including its earning and growth potential. Some of these expectations may have been set as a result of information provided by the franchisor but in many cases it is a general perception of what the business in question should make as opposed to the reality and factual figures.
It should be remembered that even the most recognised brands will yield different financial results in different areas. The financial success of a franchised business will depend on its location, visibility, amount of rent and outgoings payable, higher competition in a particular area and the ability of the franchisee to operate and grow their business. Read More NOW>>
