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November 24, 2006, Newsletter Issue #40: Investigating Franchise Business for Sale
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Tip of the Week
In addition to the usual fees, structure, and support inquiries you should take into consideration before purchasing a franchise, you should also check into the background of the franchise business for sale. Decipher how many franchise owners it has had. Note that a number of owners over a short period of time is probably a sign of some business difficulties (either in that particular location or within the franchise as a whole).
Visit the locations and observe the way they conduct current business. If it's a franchise with repeat customers, talk to some of them. Also take the time to talk to the current franchise owner about the training and support they have received from the parent company. Compare the numbers with other franchises for sale. Make sure you hire an accountant to review the books of the franchise business for sale.
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