When you want to buy a franchise, you need to pay much attention if you want to reap the rewards of your hard work. It is a big investment so make sure to be very cautious.
Sometimes, sellers of the franchise prospects want to make a quick sale and make quick money. It is essential to be aware of these people and try to avoid them because they don’t have the best intentions. They are counting on you saying yes to their bad deals. So, here are some signs that indicate that you should not buy it.
- High-pressure sales tactics
You will most likely encounter high-pressure sale as it is the most common tactics to sell quickly. When using this technique, salesperson wants to make you buy it immediately, so he makes you feel like you will miss on a great opportunity if you don’t buy it right away.
If this happens to you, and you think you are pressured to stop for a moment and think about how do you feel. Try to find a sound decision to buy the franchise right away, if you can’t then it is a pressure tactic. A good franchisor will make sure that both parties benefit from the sale. And if your process of discovering the franchise starts to feel like a used car, you should probably stop it.
- Promises of success
Knowing that nothing is life is certain, anyone who promises you success when selling franchise is undoubtedly lying to you. You must be aware of the fact that entrepreneurship requires dedication, hard work, and lots of due diligence. If someone promises something you think they cannot do, they are making a quick sale.
- Limited options for due diligence
Calling other franchisees is one of the most important parts of the due diligence process. After you have reviewed the franchise disclosure documents and finished your initial calls with the franchisor, you have to speak with franchisees.
Beware of the steering. This sales technique is when the franchisor tells you only to call franchisees on an approved list. When they guide you toward their songbirds, they expect you to be satisfied and not speak with the other franchisees. However, the best way to understand the franchise system is to talk to different franchises.
- Incredible claims
Again, as an entrepreneur, you should know that hard work is necessary to achieve success. So if someone is always bragging about how much profit the business pulls in or how much money franchise is making, it is again just a sloppy attempt at making a quick sale. Deciding whether you are going to buy the franchise or not should be just your decision. Interview the franchisees, look over the FDD and then decide.
- New models
Making a customer feel special is one of the best sales tactics, so be sure that it will be used in franchising. If a salesperson is telling you that it’s no big deal that franchise has a high failure rate because you are better than other franchises just stop listening. Rely only on your due diligence when deciding what to buy.
- Promises that it won’t take up much time
If you hear promises about making extra money in your spare time by becoming a franchise owner, give up on that franchise. Anyone who is trying to make a quick sale will tell you that business ownership is very easy thing to do and that it doesn’t take much time.
If someone is trying to explain to you why buying their franchise is the obvious choice, there is a big chance that it’s just attempt at making the quick sell. Trust only yourself, and if it doesn’t look like a sound choice to you, then it probably isn’t. You are the only one investing so don’t let anyone decide for you.
- Wide net
This tactic is based on appealing to a large number of people to make a sale. If someone invites you to some webinar or seminar that is supposed to inform you about the franchise, you should stay away.
For these people it doesn’t matter who buys the franchise, they don’t care about the franchisor and the franchise, they just want to make a sale. They believe that bringing a bunch of people together in the same room will do the job because eventually, someone will decide to buy.