Thinking of buying a franchise, but don't know what you need to know before you go into it? Don't worry; we're here to help with some essential questions that you'll want answered.

There's a ridiculous amount of franchises that people can buy into; some are good, some are bad, some might even be scams. It's working out which franchises are worthwhile (there have to be some, some franchisees become millionaires) that's difficult. To further complicate the problem, some franchises may do great in one area, but terribly in another.

So, what do you need to be asking when trying to settle on which franchise to buy into?

1) What will I be paying? - You're not necessarily just going to be paying for an upfront cost with a franchise. Many will make you buy all your equipment from them, lease your property from them, or give them a percentage of your annual profit. Even if you're not, you'll have to get all that from somewhere. Working out how much you'll be paying at the start and year on year is essential.

2) How much can I trust the franchisor? - Does the franchisor provide guarantees that you'll be the only person operating that franchise in the area? If he does, how long will it last? Will you be given priority for setting up new franchises in that area? Basically, is the franchisor going to support you, or is he going to play franchisees off against each other to chase profit?

3) What's the failure rate for franchises? - If a majority of franchises are failing in their first or second year, that's a bad sign. What problems did they have and will you encounter the same ones?

4) What are the re-selling opportunities? - Some franchisors aren't happy with their franchise being sold on and may charge you, or may only allow you to sell to a person that they find suitable. If you don't want to be shackled to a franchise for years, these are things you'll need to check. How much the franchises normally resell for is also a useful thing to know.

These questions should give you a good basis to build your own research on, and we wish you luck in finding the franchise that's right for you.

This article was written by Tom Sangers on behalf of Martin & Co, a franchise & business opportunity.

Article Source: http://EzineArticles.com/?expert=Tom_Sangers
Author: Tom Sangers