Becoming a franchisee in a well-established franchise system has many advantages over starting a new business independently, but becoming a franchisee is not for everyone.

Expert Michael Seid’s top ten reasons for becoming a franchisee, with pros and cons, are essential reading for anyone considering investing in a franchise opportunity.

It’s essential to make certain that you have adequate capital to not just open your new business, but also to operate your business through break-even.

When evaluating various franchise opportunities, you will likely encounter some “red flags” or indications that further investigation may be prudent before you commit to a franchise investment. Learn to recognize them before you take the step of signing an agreement.

Your decision to purchase a franchise should be based upon two broad understandings: first, an understanding of the advantages and disadvantages of franchising; second, an understanding of the franchise you want, and how to evaluate it.

Investing in any franchise is an important decision, and putting together enough accurate information takes effort and time. Use multiple sources to help you make your decision.

No matter how knowledgeable franchise brokers appear, how friendly they are, and how many times they refer to you as their client – they work for the franchisor and only get paid if you buy a franchise from one of their clients.

Buying an existing franchise can be a great opportunity, but remember that you still have to do your homework before you make a commitment.

You can negotiate some things in
a franchise agreement, but it’s recommended to limit your demands to things that provide you with real benefit but do not impact the ability of the franchisor to obtain consistency.

Many franchisees enter a system intending to exit within a set period of years, and evaluate franchise systems accordingly before making their investment.