What To Know When Buying A Franchise -

You should have enough cash to cover at least 12 months of operating and personal expenses while the business builds a customer base. A Consumer's Guide to Buying a Franchise

The is a federally mandated legal document that every franchisor must provide at least 14 days before you sign or pay any money. It is the most critical resource for your research. what to know when buying a franchise

Provides a range of the total costs required to open, including equipment, inventory, and real estate. You should have enough cash to cover at

An optional section where franchisors share historical sales and profit data. If this is missing, you must rely on talking to existing owners to verify potential income. Provides a range of the total costs required

Most franchises charge a recurring royalty fee, typically 4% to 8% of gross sales . Importantly, you usually must pay these even if you are losing money.

Includes contact information for current and former owners. Calling them is the most reliable way to verify the franchisor's claims. 2. Know Your True Financial Commitment