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Can`t decide on buying a Franchise

mrjonesmrjones subscriber Posts: 2
edited September 2008 in Selecting a Business
For the past 6 weeks I`ve been looking to buy out a local franchisee.  I`ve done my due diligence, talked to the franchise CEO, looked at their numbers, run my cash flow projections and everything checks out.  Financing the purchase will be a stretch but doable.
After years (almost 10) of reading about running a business I am ready to make leave my day job for this opportunity.  The hangup is that I can`t decide if this is the business to leave for.  I`ve looked at 5 businesses over the past 6 months and this has been the best opportunity so far.  The hangup about this franchise is 1) It`s a franchise with 8% royalty and 1% ad fee + a few other misc. expenses. 2) I`ll be taking out a loan and might possibly need some immediate credit for the first year.
After reading up on franchises I don`t know if they are for everyone or for people with limited businesses experience.  One of my reasons for getting into business for myself is so I can call the shots and have creative direction.  I`m also seeking flexibility in my schedule.  I don`t mind working 12 hours a day but I want to set when I work those 12 hours.
Sorry if this seems like rambling.  I`m stuck on this being 60% against buying it.  I am confident I can make it work if I get up but I don`t know if I will have the freedom and flexibility I want in having my own business.
Has anyone been in a similar situation?  What did you do and how did it work out for you?


  • jeremylorinojeremylorino subscriber Posts: 0
    The only advice towards the freedom aspect is if you can`t successfully delegate responsibilities to others then you will never have your freedom. The reason I have my own business is so I can pawn, for a lack of a better word, responsibilities off on others to save me time. A group member of mine didn`t get his freedom until he owned three franchises.
    On the subject of leaving your 9-5 to start something. You can read all you want but you will have to make that jump one day. I suggest you start something on the side first and get your feet wet and then jump off that cliff.
  • katscoolcorner1katscoolcorner1 subscriber Posts: 0
    From  R-U New To Business
    Mr. Jones,
    Buying a Franchise is a very big cost.  It could take you 5 years to make any profit at all.  You have to think, if it doesn`t work out, will you be able to sell,
    to get out.  Will you have a business that others will take a big loan out to acquire your business and merchandise?  The way the bank and loan market is right now, business loans may not be available or at a very high interest rate.  Here is what you also have to plan for.  If you don`t have any clients for 6-9 months?  Can you sustain yourself and the payments to the franchise for that amount of time?  How are you going to get clients?  Cold calling?  You have to plan for people at first not being responsive to you because you are the new kid on the block.  It`s doable but you need to plan well, and figure in your expenses.
    And last I would like to leave you with one of my videos, called


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