Franchising is a popular way for potential business owners to start a new business. A franchise offers advantages in, among other things, name and product recognition, proven operation procedures, and volume purchasing power. In this arrangement, the provider, or franchisor, contracts with you, the franchisee, to give you the right to sell or distribute a service or product under the franchisor’s system in a particular area. As with any opportunity, both advantages and disadvantages must be examined before a decision to invest is made.
The resources on this page can help you begin to understand what you need to know as you consider whether or not to become a franchise owner.
The Federal Trade Commission provides advice on avoiding costly pitfalls before buying a franchise.
The Small Business Administration (SBA) has compiled a list of resources to provide helpful advice on buying and evaluating a franchise, including an on-line training module on “franchising basics.”
The Small Business & Technology Development Center has created a resource guide to give you an overview of everything from assessing your potential as a business owner to financing your business, including information on what you need to know about buying a franchise. You can also view an online training module to help.
The IFA provides detailed information for over 1,100 franchises, a complete list of subject matter experts, and a comprehensive library of franchising information from basic “how-to’s” to advanced regulatory and legal information. The IFA includes MinorityFran which seeks to increase the number and success of minorities in franchising, including franchisors, franchisees, suppliers, and employees, and VetFran, A franchise opportunities portal for honorably discharged Veterans of the U.S. Armed Forces.
A well-regarded online and print small business publication, Entrepreneur.com offers many free articles and information on a wide variety of topics to help start, grow or manage a small business, including information about researching and buying franchises.
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