What Are Some Common Mistakes When Buying A Franchise ?

Below is a list of some of the more common mistakes or misconceptions franchise buyers make when buying and starting a franchise business.

Under capitalization – 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.

Lots 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.