Buying a Franchise

On this November 11, I thank all U.S. veterans for their service. Without you, my life and the lives of those I care about would be drastically different in the negative and I am forever grateful.

Tens of thousands are exiting companies due to tough economic conditions. They have poor job prospects. They have access to half a million dollars and more in liquidity.

Businesses succeed or fail due to a variety of reasons both in and out of the hands of ownership.  However, the franchise ‘sub-set’ of entrepreneurship adds an interesting dimension to the mix, especially as it pertains to overcoming new challenges.

A couple of months ago I had an opportunity to speak with a Cuppy's franchise owner.

You think you want to buy a franchise. You’ve had the sales pitch and been to Discovery Day, the day the franchisor sets apart to razzle-dazzle franchise buyers.

No doubt that a good franchise systems can reduce risk, speed up success, and help franchisees avoid the mistakes of others. But not all franchises are created equal.

Hurricane Ike struck Galveston-Houston and caused enormous damage. Five days after the storm, over a million have no electricity.

Here is the actual body copy of an email I received over the weekend.

I don't believe it.

Used to believe it. Years ago. But I've learned better.

Making an important decision based primarily on the content of a contract is tantamount to making an ill-informed decision.