Like any large purchase or investment, there is much to consider.  In the instance of buying a franchise, the steps to take before buying are more critical than ever before, in this changeable economy.

Do your homework: Investigate the viability of the business model and what you have to earn to meet the needs of the franchise agreement including royalties, start-up costs and franchise fees, to name a few.

Scope out the franchisor: Do they have vast experience and leadership skills? Find out and trust your gut.

Read the fine print: Pour over the details contract (e.g. franchise agreement, etc.) and seek a legal opinion from an experienced franchise lawyer. It will be money well spent.

Negotiate: The leverage doesn’t sit solely with the franchisor, you have the ability to negotiate some terms where you are not aligned.

Get a good accountant: Consult small business accountant who is familiar with the complexities of franchise accounting including tax implications.

Walk: Be prepared to walk away from the deal if you aren’t 100% satisfied with the terms.  Franchises should be considered long-term investments of your money and time.

Empowering yourself with all the right knowledge to make an informed decision will pay off in the long run and help you sleep better at night.