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What Should Franchisees Know Before Buying a Franchise?

If you are looking to start a busines in Georgia, you may consider purchasing a franchise business instead of starting an all-new venture. If nothing else, the opportunity to leverage a known brand name can give a good boost to your new operation. You may also enjoy some good support in setting up and running your business. But, like any business model, there are pros and cons to the world of franchising and there will be specific things you should be aware of and look for before signing on the dotted line.

When working with a franchisor, there are specific things you should ask about according to Forbes. One of these is what the exit strategy for leaving the franchise looks like. You may not want or need to own your franchise business forever so knowing about the process of getting out of it is vitally important. Are there financial penalties for leaving the business at certain times? Are there other restrictions associated with leaving such as the inability to work for other companies for a stated period of time? You should know all of this up front.

In addition to the base franchise fee, you should ask the franchisor to disclose any and all other costs that may be required throughout the course of the contract life. The last thing you need is to get surprised by costs along the way that end up eating into your profits. Learning what you will and will not be able to control is also vital. When reviewing financial estimates, make sure that they account for regional differences to give an accurate picture of what you can expect.

This information is not meant to be legal advice but to provide an overview of franchise businesses in Georgia.

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