How To Start A Franchise In Florida United States

The first step in starting a business franchise is research. Research must be done into the health and value of the parent company. Even large companies can be poor investments, especially if they have expanded too rapidly. Purchasing a franchise can be as risky as starting any small business.

How to Research a Business Franchise

The first thing any buyer considering purchasing a franchise should do is look into the financial health of the parent company. The Federal Trade Commission (FTC) mandates that parent companies must provide a disclosure statement called the Uniform Franchise Offering Circular (UFOC) to buyers--but it can be done as late as 10 days after an agreement has been signed. Consequently, it's important for buyers to research the company's financial solvency independently. For public companies, this can be done using the annual shareholders' report and other sources. For smaller companies, this information can be harder to locate.

Besides financial health, the reputation of the company should also be determined. Buyers should only purchase franchises from companies that have solid reputations for quality goods and services. The Better Business Bureau is a useful resource for investigating public perception of and satisfaction with a particular company.

A business brokerage can help buyers research various franchise opportunities and provide perspective on how to identify solid businesses. RPI Commercial is a brokerage with years of experience evaluating commercial opportunities. RPI can be reached toll free at 1-877-549-5210 or via email at info@rpicommercial.com.