Vetted Biz is the premier online platform for qualified existing business and franchise listings. Our platform brings transparency to all sides by providing current industry data, detailed business information, and lead generation support to franchisors and business brokers in connecting them with qualified leads.

To enter into contact with most business listings, you must be a Vetted Member. Click here to learn more about our plans & pricing.

Some points Vetted Biz recommends candidates to consider when evaluating a specific franchise include:

• Why am I looking to buy a franchise?
• Is there a specific background or experience the franchise system is looking for?
• Understand the business and have all questions answered before moving forward
• Meet the management team / Take part on discovery day
• Speak to current franchisees
• In-depth review of the Franchise Disclosure Document (Vetted Biz recommends all candidates to hire a franchise attorney for the review)

When you are interested in buying a franchise, you are presented by the franchisor with a legal document, the Franchise Disclosure Document (FDD), that details your rights and obligations as a franchisee. When you become a franchisee, you obtain the right to operate your business under the franchise’s name and you are also required to pay the initial fee and royalties.

Regarding obligations, the amount and details of rules differ depending on the type of business. If your franchise sells goods or food, you may have to use specific ingredients and products that will be provided by the franchisor. If, instead, your business is service-oriented, you will likely have to follow your franchisor’s manuals and procedures. Any item or service must be previously authorized by the franchisor if not yet specified in the franchise agreement.

If you are passionate about owning your own business, have a strong worth ethic, commitment, motivation to succeed and can follow a proven system then you are the right candidate for franchising.

Advantages:

• Brand recognition and network
• Proven business model
• Guidance for management and how to run the business
• Pre-opening support: site selection, construction, design, etc.
• Training and ongoing support from the franchisor
• Network of franchisees for support
• Help with local marketing and advertising
• National advertising by franchisor

While some franchisors offer assistance with financing, others do not. You should also consider alternative modes of financing however such as SBA loans, friends and family loans as well as external.

You can find more information on SBA loans here.

Although there is no guarantee from the franchisor’s end, you may be able to have a better idea of the franchise’s earning and/or revenues on Item 19 of their Franchise Disclosure Document. Also, it is essential to speak to as many franchisees as you can. 

You can find more information on franchise profits here.