There are lots of franchise opportunities available. However, before you start deciding between them, you should be very clear on what you really want  in a franchise. For example:

• What is your primary reason for starting a franchise business ? e.g.
  • to earn a living;
  • to learn;
  • for the challenge; or
  • to use existing skills?
• What industry do you want the franchise to be in?
• Will it be seasonal, eight hours a day or 24/7?
• When do you want to start the franchise?
• What kind of risks can you tolerate?
• How much money do you have to invest?
• What kind of lifestyle do you want?

Understanding some of the risks of a Franchise Model

Franchising has its pitfalls like any other business model.  However, there are heightened risks in the reliance a Franchisee may have on the Franchisor.

For example, some of these risks include:

• Franchisors putting undue pressure on potential franchisees including to  quickly sign agreements;
• Franchisors improperly making or withholding critical financial, operating and performance information;
• Franchisors inappropriately using confidentiality agreements to withhold critical information to franchisees;
• Franchisors promising certain levels or amounts of profit to be  made by the new franchise;
• Franchisors who renege on their promises, thereby compromising the     already operating franchisees; or
• Franchise brokers misrepresenting information about their roles and making improper recommendations about which franchises to buy.