The COVID-19 pandemic has forced the vast majority of Americans to spend more time at home, and it has had a hugely detrimental impact on the brick-and-mortar retail sector. Even with some light at the end of the tunnel heading into 2021, there are still many unknowns, and many experts are suggesting that consumers’ enhanced reliance on home services and home delivery will be an enduring trend.
Given these considerations, buying a mobile franchise may seem like a good option. If you are thinking about buying a mobile franchise, what do you need to know? Here are some tips from national franchise attorney Jeffrey M. Goldstein:
1. Make Sure You Know What it Takes to Succeed
Succeeding as a franchisee requires different skills and a different mindset than succeeding as an independent business owner. While you will need some of the same general business skills, you will also need to be able and willing to operate within the confines of the franchise system. While there are no true “keys” to success, there are steps you can take to improve your chances of building a profitable mobile franchise.
2. Make Sure You Know Why Franchises Fail
In addition to knowing what it takes to succeed, it is also important to know why franchises fail. Building a successful franchise requires more than the ability to market and operate a successful business. Your success will be contingent upon your franchisor’s business practices as well; and, in many cases, franchisees fail because their franchisors do not uphold their end of the bargain.
3. Carefully Weigh Your Options
There are lots of mobile franchises out there—including several that have popped up during the COVID-19 pandemic. When choosing a mobile franchise, you need to choose carefully, and you need to make a reasoned decision that is based on as much information as possible. There are several ways that you can gather information during the due diligence process, and you should not move forward unless and until you feel confident that you know what you are getting yourself into.
4. Hire a Franchise Attorney to Review the FDD and Franchise Agreement
Franchise Disclosure Documents (FDDs) and franchise agreements are long and complex, they are often poorly-written, and in some cases, they are inconsistent with one another. In order to make sure you know the legal terms that will govern your mobile franchise, you need to hire a franchise attorney to review these documents for you.
5. Make Sure You are Buying a Franchise for the Right Reasons
Finally, when buying a franchise, it is important to make sure you are doing so for the right reasons. Are you hoping to make a quick profit? Or, are you passionate about the business opportunity you are pursuing? Once you sign a franchise agreement, there is no going back; and, if you are not committed to your franchise’s success, you could be facing a long, difficult, and costly road ahead.
Learn About Our Fixed-Fee Franchise Business Reviews for Prospective Franchisees
Are you thinking about buying a mobile franchise? If so, we encourage you to schedule a time to discuss our fixed-fee business review programs with national franchise attorney Jeffrey M. Goldstein. To learn more about what you need to know before moving forward, call 202-293-3947 or inquire online today.