If you are looking for a lower up-front investment, a smaller franchise system may be your only option. Regardless of how much you budget toward the investment, match the franchise with your skills, background and experience. For example, avoid purchasing a fast-food franchise if you lack experience in that industry. Stay close to the industries you know well. Next, decide if you want to operate a franchise from your home with no additional overhead and no salaried employees, or from an office.
Some franchises require an office or storefront with support staff.
Researching franchise opportunities Because not all franchises are successful, perform due diligence and investigate at least three different franchises that offer the same product or service you have decided on. First, visit your library to review franchise handbooks, which contain information about existing franchises and their parent companies. Look up any available information that has been written about the franchise in newspapers, journals and the like. Research everything, including the growth potential of the industry, the market, the customer base and the track record of the franchise. Look for franchises that own and operate company stores.