FAQ: What Are Some
Common Mistakes When Buying A Franchise?
Answer: Below is a list of
some of the more common mistakes or misconceptions franchise
buyers make when buying and starting a franchise business.
Undercapitalization
- On average it
takes over 2 years for most new franchise businesses to become
profitable. Unfortunately many new franchise owners have not put
adequate working capital in reserve to weather this crucial initial
start-up phase successfully.
Its A lot Of Hard Work - Many
new franchise owners
severely underestimate the level of commitment and hours of hard
work required to successfully operate a small franchise business
today.
Poor Location - A poor location with low
visibility and marginal traffic is a tough challenge to overcome for
any business to survive including well known franchise concepts.
I Can Hire A Manager - Many new franchise owners
are under the mistaken assumption that they can eventually hire a
manage to run their business once its opened. Unfortunately
this is in most cases just not practical or profitable for the vast
majority of single unit franchise locations.
Disclaimer: This website and directory is
designed to provide information only to prospective business and franchise
opportunity buyers. The prospective business buyer is responsible to
thoroughly investigate any franchise or business opportunity listed on
this web site, obtain all appropriate disclosure documents, and seek
expert consultation prior to making any investment decision. The
representations, views, and opinions expressed or implied in any
document or image included in, or linked to or from this site, do not
necessarily state or reflect those of azfranchises.com