Ep 80 | BUYER BEWARE - The Downside of Franchise Ownership

What happens when franchise ownership goes wrong? Everyone gets into entrepreneurship thinking about how it's going to change their life for the better.

The fear of failure is usually what keeps the risk averse individuals from ever taking the leap.

People within the franchising world will usually only tell you the success stories. Rarely do you ever hear stories of when a franchisee failed to make it work.

Launching a business is a risk.

Whether it's a franchise business, a business acquisition, or launching a business from scratch. It takes a ton of grit to becoming an entrepreneur.

In my experience as a franchisee of multiple brands and a franchise consultant, NOT ALL BRANDS are created equal.

Some brands need to be actively avoided.

Unfortunately for franchise owners, the Franchise Disclosure Document is usually written in extreme favor of the Franchisor.

Therefore, even if there was extreme misrepresentation of the brand, there is not much the franchisee can do in order to get back what was lost.

This calls people who are interested in investing in a franchise concept to do extreme amounts of investigation and due diligence BEFORE making a franchise investment.

If the data is not there be confident in walking away. You should never feel rushed or pressured into franchise ownership.

When working with a franchise consultant/broker/advisor, fully understand their incentive for showing you the brands they are showing you.

We get paid from franchise systems a commission when franchise candidates invest in a brand we show you.

Make sure you are always moving forward in peace.

This episode covers the story of a franchise owner who walked into a system thinking it would work one way... turns out the systems did not work as advertised.

Listen and learn.

Visit thestreetwisefranchisee.com to start your franchise journey on the right foot.

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