Buying into a franchise? Here's one bit of essential, and free advice!

According to the Franchising Australia 2012 report, published by Griffith University, in Australia there are currently about 1,180 business format franchisors, and about 73,000 operators of business format franchises.  These are big numbers.
 

For many years I have advised and continue to advise franchisee clients, both long time operators and first timers.
 

With new intending franchisees, there’s much to discuss, advise, explain, check, re-check, and so on.  Particularly for newcomers, usually advice ought to be sought from their solicitor, accountant and business advisor.
 

Are you thinking about, or have decided to buy a franchise business?
 

Here’s what I think is probably the best early advice, and easiest to follow and understand by newcomers:

Before committing, talk to and ask as many questions as you can to as many current franchisee operators and owners in the system as possible.

That’s how you often get a real-world sense of how the system actually works with real franchisees, how much real or worthwhile support is provided by franchisors, and if the rewards are actually there to be earned. 
 

Unfortunately, sometimes this can reveal that the reality doesn’t quite match the claims in the glossy brochures.  The time to find this out is before committing to buying into a system.
 

A compulsory document that must be provided by franchisors to prospective franchisees before franchise documents are signed, is a Disclosure Document.  One of the may types of information it contains is the names and contact details of other franchisees, at least in your state, if not nationally.

Use it!