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Contributing Authors

	Steven D. Strauss Author of The Small Business Bible
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	Stephanie Chandler Author of The Business Startup Checklist & Planning Guide
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	Tom Severance Author of Business Start-Up Guide
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	Joe Kennedy Author of The Small Business Owner's Manual
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Franchise Evaluation Checklist

Here is a helpful franchise evaluation checklist to assist you:

On The Franchise Opportunity Itself:

Did your lawyer approve the franchise contract after he studied it?
Does the franchise call upon you to take any steps that are unwise or illegal in your state, county, or city?
Does the franchise give you an exclusive territory for the length of the franchise, or can the franchisor sell a second or third franchise in your territory?
Does the franchisor do business with other franchisors that handle similar merchandise or services?
If the answer to the last question is yes, what is your protection against this second franchisor organization?
Under what circumstances and at what cost can you pull out of the franchise contract?
If you sell your franchise, will the purchaser pay you for your goodwill, or will you lose the value you have built into the business?

On The Franchisor:

How many years has the franchisor been in business?
Does the franchisor have a reputation for honesty and fair dealing among the local entrepreneurs holding its franchise?
Has the franchisor shown you any certified figures indicating exact net profits of one or more going franchises? Have you checked with the franchisee?
Will the franchisor help you with management training programs, employee training programs, public relations programs, merchandising ideas, or financing ideas?
Will the franchisor help you find a good location for your franchise?
Does the franchisor have adequate financing to carry out its stated plan of financial help and expansion?
Is the franchisor a one-person company or a larger company with a trained and experienced management team?
Exactly what can the franchisor do for you that you cannot do for yourself?
Has the franchisor investigated you carefully enough to assure itself that you can successfully operate a franchise at a profit for both of you?

On The Franchisee (You!):

How much equity capital will you need to buy the franchise and operate it until your sales revenues exceed your expenses?
Where are you going to get the equity capital you need?
Will you give up some independence of action to get the advantages offered by the franchise?
Are you confident you have the ability, training, and experience to work smoothly and profitably with the franchisor, your employees, and your customers?
Are you ready to spend much or all of the rest of your business life with this franchisor, offering its product or service to your public?

On The Market:

Have you thoroughly researched the product or service market and its pricing?
Will the population in your territory increase, remain static, or decrease over the next five years?
Will the demand for the product or service you are considering be greater, about the same, or less in five years?
What competition exists in your territory for the product or service from both franchise and non-franchise firms?

Table of Contents

Introduction

Business Ideas

Business Startup Options

Finding Your Niche

Business and Product Names

Business Entities

Business Plan

Home-Based Business

Marketing

Public Relations

Advertising

Pricing

Sales

Banking and Finance

Employer Identification Number (EIN)

Taxes