When Should You Say No to a Franchise Opportunity?
Any successful entrepreneur needs to know how to say no and walk away. If you want to make big bucks in business, you must be ready to grab opportunities but you also mustn’t be afraid to turn them down. The key to finding the perfect franchise opportunity is not just to acquiesce to anything that comes your way but to do your due diligence and make sure you fully evaluate every potential franchise opportunity beforehand. It is likely that you will have to turn down multiple deals before you find the right one for you.
When there are too many CFA Warnings
The CFA Disclosure Document contains numerous pages of important information and vital facts. It is crucial to do your research and see if there are any red flags that apply to your opportunity. If you see that a lot of franchisees in the sector you planned to acquire have closed their businesses, it may be because there is an unfixable problem. At this point you need to do a fact-checking mission and find out what exactly the situation is. If there is indeed an unresolvable problem then you need to locate a better and different franchise opportunity and say no to this one.
When you can tell that it’s just a flash in the pan
To survive in business, longevity is important. Sometimes people get distracted by opportunities that seem ‘hot’ or ‘trendy’ without examining the long term picture. You need to make sure you do your research and find out whether the franchise concept is something that can do well over numerous years and provide you with a sustainable business model. Here are a few examples of franchise concepts that were once cutting edge but are now dead and gone. If a franchise opportunity can’t provide you with a business model that can grow, expand and mature with time, then you need to say no.
Your Lawyer Says No
Anyone looking for a franchise opportunity must hire a franchise lawyer. It is the job of franchise lawyers to keep up with the constantly changing legal rules and regulations that govern the franchise industry, as well as to have a clear vision of the sector in general. As a result, franchise lawyers are experts who are savvy and know what’s hot and what’s not. It is in your interest to hire the best franchise lawyer you can. A franchise lawyer can protect you from a foolhardy decision or give you the inside story on a business. They can also rapidly and wisely advise you on the agreement. If an agreement looks odd or contains anything they don’t believe is in your best interest they will be able to tell you. If your franchise lawyer does not recommend you sign an agreement then you should say no. If in doubt you can get a second opinion, but it is more than likely that they know what they’re talking about.