A red flag is a warning sign that means DANGER or sometimes TURN AROUND AND GO BACK HOME. Do you know the red flags of franchising? Here are two more red flags that signal you should head for the hills.
- Culture and Values It may sound hokey, but you must evaluate the franchise and it’s personnel in term of whether they are your kind of people. Do you know what’s important to them and is it important to you, too? If you don’t feel comfortable with their philosophies and that they’re committed to helping you be successful, it’s a red flag.
- Unclear Numbers You must understand how the economics of the business work at the unit level and how much money you can make in the business. Some franchises publish an earnings claim in Item 19 of their UFOC. If you can’t get a clear picture of the numbers you need to determine the numbers at any franchise opportunity after digging and trying hard, see the red flag and run.
It never hurts to go with your gut. If something doesn’t feel right, even if you can’t put your finger on it, move on. There are more franchise fish in the sea.
FranNet was founded in 1987 to facilitate successful matches between aspiring entrepreneurs and franchise companies. FranNet works with many of the best franchises in the industry and FranNet consultants specialize in helping their clients find the right franchise through their exclusive matchmaking process. To learn more about opportunities with FranNet visit www.frannet.com or call toll free 1-800-FRANNET.