Buying a Franchise? Avoid These Costly Mistakes & Choose the Right One

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Feb 11, 2025

Thinking about buying a franchise? Avoid common pitfalls! Learn how to research and validate the right franchise for you. Discover key insights like the importance of asking current franchisees the right questions and recognizing red flags in the Franchise Disclosure Document. Brand recognition might not be everything, and understanding the four stages of the buying process can save you from costly mistakes. Plus, find out how franchisors evaluate potential owners—it's a two-way street!

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ADVICE

Brand Recognition Isn't Everything

Don't prioritize franchises solely on brand recognition.
Big brands are often sold out in your market, requiring a different acquisition strategy.

ADVICE

Follow a System

Follow a systematic process when researching and buying a franchise.
Brokers or consultants can guide you, offering more than just brand introductions.

ADVICE

Four Stages of Franchise Buying

Approach franchise buying in four stages: research, validate, analyze, and decide.
Avoid getting stuck in any one stage, especially analysis paralysis.

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Are you thinking about buying a franchise? Don't make costly mistakes that could drain your time, money, and energy! Learn how to research, validate, and choose the perfect franchise.

In this episode, Erik Van Horn breaks down the step-by-step process of buying a franchise the right way. He shares how to properly evaluate a brand, avoid red flags in the Franchise Disclosure Document (FDD), and ask current franchisees the right validation questions. Erik also explains why brand recognition isn't everything, how to navigate franchise broker and consultant relationships, and what franchisors look for in potential owners.

Discover the four stages of the franchise buying process, why franchisors evaluate you as much as you evaluate them, and smart franchise validation strategies to avoid being sold into the wrong franchise. Tune in and learn to buy with confidence!

“Buying a franchise, probably for most people, is one of the biggest financial decisions they'll ever make. You do it right, it can be life-changing; it was for me. You do it wrong, you rush it, and it could cost you everything. I've seen that as well." ~ Erik Van Horn

In This Episode:

- Why brand recognition isn’t always a good reason to buy

- The four key stages of the franchise buying process

- Understanding that franchisors also evaluate buyers

- Choosing the right franchise industry for you

- The role of franchise consultants, brokers, and FSOs

- Following the franchisor's process

- Researching and finding the best franchise opportunities

- Reviewing the FDD (Franchise Disclosure Document) the right way

- Asking smart franchise validation questions

- Preparing for Discovery Day and making a decision

Resources:

🌐 Consult with Erik - https://form.jotform.com/222685728939070

🌐 Want to buy a franchise? Connect with Erik here - https://forms.gle/n4JedEuU5p7asE617

🌐 Want to franchise your business? Connect with Erik here - https://forms.gle/n4JedEuU5p7asE617

🌐 Franchisees and franchisors find proven tactics and strategies to scale YOUR businesses - https://scalablefranchise.com/

🌐 Download the 100+ Validation Questions To Ask Franchisees! - https://franchisesecrets.com/validationquestions/

Connect with Erik Van Horn:

🌐 Website - https://franchisesecrets.com/

📷 Instagram - https://www.instagram.com/erikvanhorn/

👍 Facebook - https://www.facebook.com/erik.v.horn/

💼 LinkedIn - https://www.linkedin.com/in/evanhorn/