Video: Identifying and Assessing Risks Before Buying Into a Franchise

In this video, Minnesota franchise attorney Aaron Hall talks about what you should watch out for before buying into a franchise, and how you should research a franchise before buying into it.

Research the Franchise

Talk to other franchisees of the franchise to learn about their experiences. Speaking with a franchisee that is similar to your future franchise will help you attain the most relevant and helpful information. Identify:

  • What challenges does the franchisee face on a daily basis?
  • What does it take to succeed in the franchise?
  • Is the cash flow continual or cyclical?
  • What marketing efforts have been successful for the franchisee?

Speak with the Franchisor

  • Inquire about what support the franchisor provides its franchisees

Meet with a Franchise Attorney

  • An experienced franchise attorney should analyze the franchise agreement to make sure that its language aligns with your expectations.

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