Becoming a franchise owner can be profitable, if you have the right mindset. Buying into an established business plan with a recognizable name has both advantages and disadvantages.
I found an interesting article about franchises in Entrepreneur that advises asking 10 questions before entering into a franchise agreement.
In particular, the one thing that stood out was the part about the total cost of the franchise, which wisely pointed out costs of incorporation and legal fees. Each company is different, and you need to understand you will spend money franchisers will not discuss with you in any great detail.
At the risk of buying the lead, the most important thing you can do is incorporate a franchise properly. It is vital to protect yourself and your assets. Different states have different regulations, and your home state may require something vastly different that the state in which the parent company is located. Although those companies are established, and they feel comfortable in thinking their franchisees will succeed, history is no indicator of future success. Protect yourself.
If possible, speak with other franchise owners prior to committing to a franchise contract. Have your lawyer review the franchise agreement. Know your rights entering into the agreement.
Of course there are other issues you should look into before starting any business. We make it our mission to make it as easy as possible. If you need information on incorporating your business, visit our website.