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How to purchase a NEW franchise

There are a number of key things you should and shouldn't do when planning to purchase a franchise.


  • Assess yourself to see what kind of franchise, if any, will suit you.
  • Find out what franchises are available.
  • Assess franchise opportunities carefully, ask questions and talk to other franchisees.
  • Investigate the financial prospects for the business.
  • If you'll need to raise bank finance, ask your bank if it will consider a loan for the type of franchise you're considering.
  • Do your own market research into customers and competitors in your area.
  • Draw up a business plan.
  • Check the franchise agreement and get professional advice.


  • Take up the first opportunity before investigating alternatives.
  • Allow yourself to be hurried into making a decision.
  • Pay any non-refundable deposit.
  • Commit yourself before you're completely satisfied.
  • Assume a business will work in your area just because it works elsewhere.
  • Rely on the forecasts provided by the company selling you the franchise.
  • Sign any agreement without legal advice.