When you are looking to start a cafe franchise, make sure that the company is open, honest and transparent in their business dealings. Do as much research as you can regarding the company from various angles. Search the internet to see if you can find comments left by franchisees about their experiences. In each state, there are organizations that regulate consumer affairs and franchises. You should seek out these organizations and see if they have any information regarding the franchiser who you are looking to do business with. Try to figure out whether the franchise that you are thinking of buying has complied to the laws of your state and locality. You don’t want to put so much time and money into your franchise pursuit, just to lose all of it or have to spend more money.
Find out whether the company has ever become bankrupt or if there have been any lawsuits filed against it. If you do find out that there has been a bankruptcy or lawsuit, contact that court and get copies of the documents pertaining to that case to see how everything turned out.
Prospective franchisees are legally entitled to the Franchise Disclosure Document, especially during the time ten days before signing a contract. If a franchiser utterly refuses to provide this important document, then something is fishy. You should not deal with that company. The Franchise Disclosure Document documents everything about the franchise—-past franchisees, fees, how much a person has to invest in the business …Read more