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Franchises offer entrepreneurs many benefits, including marketing tools and expertise, lots of back room support, and training to help new business owners succeed.

The road to the right franchise, however, may present some rough terrain to cross, which is why preparation is so critical. Every potential new franchisee needs to take the time to read the fine print before signing any contracts.

The good news is that Federal Trade Commission regulations provide a good safety net, which goes a long way toward helping potential new franchisees avoid getting a raw deal. A franchise coach can help you through the nitty-gritty of this process.

You will want to get a copy of the franchise disclosure document, which franchisors are required by law to provide you at least 14 days before you sign a contract or pay any money. You can ask for the document in any format convenient for you.

Before signing any contracts, we recommend you consult a franchise attorney who has the expertise to help you review what can be a long and complex agreement. In the meantime, as you begin your preliminary research, here’s what you should look for:

Franchisor’s Background

You want to know how long the franchisor has been in business. What’s the competition like? Pay close attention to the general business backgrounds of the company executives and how long they’ve been with the company and in the industry.

Litigation history

Has the franchisor been involved in any litigation with their franchisees? Have any of its executives been convicted of fraud or other violations of franchise law? Have franchisees filed law suits against the franchisor? These would all be red flags to further investigate if not disqualify this franchisor from your search.

Initial and Ongoing Costs

This is critical information since you never want to find yourself short on funds or surprised by costs you should have known about. Examples of costs franchisees face are: advertising, business promotions, operating licenses, inventory, royalty payments, cost to purchase equipment, and insurance, among others.

Only by estimating your costs can you realistically evaluate franchise operations to see if you have the capital to succeed in this business.

Restrictions

Franchisors may restrict from whom you order supplies, what you may offer for sale and where you can sell. Each franchisor will have different ways of determining a territory, which is meant to protect current franchisees but may not be satisfactory to you. For example, Dunkin’ Donuts has restrictions limiting some franchisees from also offering 31 Flavors ice cream.

Training

While franchisors offer training, you need to know who is eligible for training and who pays. Are new employees eligible? Are support staff available for ongoing support? Again, make sure you know all the costs.

Advertising

Franchises often are asked to contribute a portion of their earnings for advertising. Get the details on what the franchisor requires. What percentage of the advertising budget is spent in your area? Will local advertising amount to extra out-of-pocket costs?

Current and Former Franchises

Plan on talking to as many current franchisees as possible. Ask them what you will need to do to succeed. Also talk to former franchisees to learn what went wrong for them. Make sure you ask financial questions, such as their total investment, and how long it took them to recover their initial investment. What are their earnings? Franchisees’ income might vary quite a bit, depending on geographic area, the skill and commitment of the owner, and other factors.

Financial History

You want to make sure the franchise company is financially stable since you certainly don’t want the company to go out of business just after you invested your money. You also want to ensure the franchisor has sufficient money to supporting its franchise system. You will have access to the financial statements of the franchise company, so review them – or better still, have an accountant review them for you.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

© Dan Citrenbaum 2025

Despite all you may have heard about the barely-out-of-high-school techie crowd in Silicon Valley, the folks most likely to start a franchise are in midlife. You read it right! That’s according to a recent study by the Kauffman Foundation and Legal Zoom, which found that, in 2013, 35% of all new businesses were started by people over the age of 50. In fact, people over 50 started businesses at a higher rate than those between the ages of 20 and 34. That’s not really surprising, considering the wealth of experience these seasoned members of the workforce bring to the table, not to mention access to capital and networks. So if you’re one of those folks stagnating in an unsatisfying job or if you’ve been downgraded or downsized by a company in decline, you might want to consider one of the simplest ways to start a new business, a franchise. Franchises have a multitude of advantages over independent businesses, including a network of support, training, and a proven system intended to help people achieve success even though they may have little experience in the field. Opportunities in franchising abound —75 industries are represented, and a franchise coach can help get you started with your research. The fastest growing sectors franchising are business to business and consumer services. These areas are perfectly suited to the executive and managerial backgrounds of most of today’s new franchisees – much more so than fast food or retail that often come to mind when people think about franchises.

6 Easy Steps To Start Exploring Your Franchising Options:

As you assess where you want to start the next stage of your career, you’ll want to conduct a thorough process of due diligence:

1. Assess Your Skills

No matter your background, you’ve developed an array of expertise, such as solving customer problems, managing employees and systems, selling yourself, and maybe selling a product or service. Figure out how your skills might transfer to a franchise that captures your interest.

2. Read Up On Franchising

Check out the International Franchise Association’s informative website for types of franchises and articles on franchising. Make lists of franchises that best match your skills, experience, and interest.

3. Peruse A Few Franchise Disclosure Documents

Franchisors are required by federal law to disclose a great deal of helpful information in these documents, including the backgrounds of their executives, litigation history, as well as a full list of costs associated with purchasing a franchise. You also receive a full list of franchisees (more on this below). Franchisors must write these documents in common English, not legalese, so they’re quite readable.

4. Interview Franchisees

Franchisees are your best source of information. You can call these owners, because the franchise companies provide their contact information in the Franchise Disclosure Document. They may be busy, but many franchisees are happy to talk to folks who may be walking the same path they recently traveled. So make an appointment and respect their time. Ask about the franchisor’s system —what’s working and what’s not, and find out if, knowing what they know now, they would purchase this franchise again.

5. Talk To Franchisors

As you start to narrow your options, call up some franchisors to learn more about their operation. Get a feel for the corporate culture and how well you might fit in.

6. Contact A Franchise Coach

A coach can help you navigate your way to franchises that are reputable and have great track records. They have worked with dozens of clients over many years and add another layer of experience to help you make the best selection. And their services generally come free of charge. So take heart, your middle years may be your most productive and profitable yet. Start your exploration of franchise ownership today! 

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

The stories are legion about people who’ve breathed new life into their careers with a franchise or even a slew of franchises. But there are some pretty notable misses in the franchise business, as well. Just think Quizno’s or Curves, two franchise systems that, for different reasons, have faltered: Quizno’s, the once promising sandwich shop, is now in bankruptcy; and Curves, fitness centers for women of a certain size, is a shadow of its former self. While it’s true that nothing in life is guaranteed, you can do quite a bit to minimize your risk by thoroughly checking into a franchisor’s track record. The federal government requires all franchisors to disclose much useful information in its Franchise Disclosure Document (FDD), and then, of course, the franchisees can tell you firsthand about their experiences with the company. Critical to your background research is your conversation with the franchisor. Most franchisors will have a standard protocol for potential new franchisees that include in-person and telephone meetings with selected executives as well as lots of reading materials to introduce you to the franchisor’s system. You need to use this opportunity to zero in on the issues that are critical to helping a new franchisee succeed.

9 Key Questions To Ask Franchisors

Here are nine key questions to ask franchisors:

1. How much will it cost to purchase the franchise?

These numbers will be broken down and listed in the FDD, but you want to hear what the franchisor has to say on the subject. If they try to sugarcoat the costs in any way that doesn’t match your background research, alarm bells should sound in your brain. You always want the facts delivered to you straight. After all, one of the worst positions you can find yourself in is to have run out of capital before your business becomes profitable.

2. What is the background of the business and company executives?

While this information, including previous litigation, will be listed in Items 1-3 of the FDD, you want to get a sense of who these people are. Follow your gut. If you feel someone isn’t being genuine or truthful with you, stay away.

3. How old and established is the franchise?

Ask executives about how the company has evolved and, ideally, improved over the years. If it’s a fairly new franchise, what are the company’s plans for growth, and how will they help their franchisees to succeed?

4. What is the success rate of franchisees?

They may give you a rosy window into franchisee success, but you can ask good questions if you’ve first read about any claims the company may have made in the FDD. You should also be more knowledgeable if you’ve already interviewed franchisees for whom you can find contact information in the FDD.

5. What type of training program does the franchisor offer?

How much ongoing support will you get? Are particular executives assigned to your region? Will you always be able to get someone on the phone for a consultation?

6. What exactly is involved with the system?

You need to determine if this this a system you are capable of following. Also is the system sufficient to help you achieve success. Sometimes, newer franchises may still be working out the kinks.

7. If things go badly for a new franchisee, what does the franchisor do to help?

Is there a triage system of some kind? Good franchisors should have adequate support to help you during the start-up phase, when you may hit a few stumbling blocks.

8. How competitive is the market?

It might seem like some business sectors are flooded with competitors. Maybe that means the field is too crowded. That might, however, be a sign of strong, growing demand. You will want to know how the franchisor feels about local competition, and what plans they have for helping you to succeed in a competitive market.

9. What activities does the owner spend their time on?

Just because McDonalds sells hamburgers does not mean that the owner spends their days flipping burgers. When you first consider a franchise, the role of the owner might also be surprising. You will want to learn what tasks take the owner’s time. Then, you can assess if you have the right skills and interest to excel in those areas At the end of the research, after you have talked to several franchisors and narrowed down your list to one, you will visit the franchisor on a Franchise Discovery Day. Check out whether the infrastructure is actually in place. Is there a training center? Are the executives interested in you? Can you establish a good rapport with them? And only then will you be ready to proceed. Of course, before you sign on any dotted line, you will want advice from objective experts, such as a good franchise attorney.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589. 

Thinking about buying a new business or franchise? Then Caveat Emptor! The best way to protect yourself from stumbling into a bad deal is to carefully research your new business niche and consult a knowledgeable franchise attorney. Buyer beware, often considered a consumer warning, applies just as strongly to those thinking of buying a business. In the world of franchising, federal law has established disclosure rules to help people make wise choices. Still, it pays to consult an attorney that specializes in franchising. Of course, any franchise coach or attorney will advise prospective franchisees first to read the franchise disclosure document (FDD), which the law requires be written in standard English, so it can easily be understood by the non-lawyer. You still need a lawyer who specializes in franchises to review the franchise agreement or contract to make sure your interests are protected. Since experienced franchise lawyers know firsthand where franchisees get into legal difficulty most often, they can help you avoid the pitfalls that may exist in some franchise agreements. Most of the items in the FDD are incorporated in the franchise agreement, but an attorney can help you review the first four items, which provide background on the business and its senior executives, most particularly whether they’ve been involved in previous litigation or bankruptcy. And while there are costs involved, you can find an attorney who will provide these services for a flat fee. You should consider it part of your cost of getting into your own business. “I get phone calls daily from people who did not consult an attorney upfront,” said Nancy Lanard, a Philadelphia attorney who specializes in franchise law and works with clients across the country. “It’s much harder at that point.

Before buying a franchise, be sure to review this checklist:

1. Review Franchise Agreement

Five or 10 years ago, most franchise agreements were completely non-negotiable, Lanard said, but now she negotiates non-material changes to most franchise agreements to protect the interests of the franchisee. Franchise companies are reluctant to negotiate any material changes for an individual franchisee because it would require them to revise their franchise disclosure document, an expensive proposition, she added. In her review of the contract, Lanard looks for issues that might create undue financial burdens on the franchisee, including how notice on default is handled and remedies applied.

2. Check Trademark Registration

Since the trademark is “the cornerstone of what they’re buying,” Lanard’s firm checks the trademark registration to make sure another firm isn’t operating under the same trademark in the designated territory — not an unknown occurrence.

3. Set Up A Legal Entity

Lanard strongly advises franchisees to set up a legal entity before signing any agreement with a franchise company to protect themselves from third party claims. Each location should be a separate entity, she added. Her firm charges a separate flat fee for this service.

4. Negotiate A Lease

“A lease can make or break a franchise,” Lanard said. Good franchisors should offer help finding a good location. They might have demographic studies and a great relationship with local brokers. They also can evaluate the lease from a business perspective, help negotiate good business terms, favorable rent, build-out costs, renewal terms, and so on. “Leases are highly negotiable,” Lanard said. A lawyer can protect the franchisee from onerous costs that landlords may try to impose, and a good lease can save a lot of money over the long term. A separate flat fee is charged for this service.

5. Protect Territory

Disputes over territory are “probably the No. 1 litigated area of franchising,” Lanard said. A good franchise attorney will make sure that the language in the agreement regarding territory affords the franchisee an actual separate, exclusive territory. A cautionary tale is a franchise that set territory based on zip code, which allowed franchisees to open across the street from one another — not a great way to stay in business.

6. Generally Good Advice

Likely topping this list will be for prospective franchisees to carefully study the fees and other costs — items five to seven in the FDD — required to set up a franchise. Take the most conservative approach since many businesses fail as a result of having insufficient capital to sustain the business until it can operate in the black. Good research cannot be over emphasized. Lanard tells a story of a woman who phoned, excited about purchasing the franchise of her dreams in the automotive sector, a franchise she had aspired to operating since she was a little girl. While she wanted Lanard to review the franchise documents for her, Lanard suggested she interview franchisees to see if they were satisfied with the franchisor’s support and training. When the woman called back, she reported that all the franchisees she spoke to were unhappy and wished they had never bought into the franchise company at all. Better to face this type of disappointment than the losses that can accrue as a result of signing a bad contract and trying to to fix it later. Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484)278-4589.

As we head toward a new year, lots of us will be taking stock, not only about personal character resolutions but also about where we are at work. Related: 3 Tips To Avoid Missing Out On New Job Opportunities If you feel stuck at a dead end or have started to wonder, “Is this all there is?” it may be time to think about ways to recharge your career. Opportunities abound. All you have to do is break free of your inertia and start exploring ways you can escape the hum drum of fulfilling someone else’s career goals and consider venturing out with your own business. If you experienced a sudden tightening in your gut at even the thought of becoming an entrepreneur, remember you risk absolutely nothing by conducting an exploration. So why not ignore the cautious risk-averse voice in your ear and get started? After all, in many ways owning your own business can be less risky than remaining an employee in today’s revolving-door economy. You can start by contacting a franchise coach who can introduce you to a vetted list of successful franchises that might offer you ways to reach your own personal career goals, whether that be work-life balance, greater income potential or an opportunity to tap your own inner talents in a particular business with which you may not have any experience.

A Four-Step Path For Exploration

1. Start With The Internet

Check out the International Franchise Association for a starter list of franchise opportunities across 75 different industries. Narrow down your list to a few categories that suit your skills, experience and interest and then look up those franchises at their own websites.

2. Contact A Franchise Coach

Take an evaluation to help you assess your interests and your career goals, and let a franchise coach help match them to a set of possible franchises.

3. Read Business Trend Stories

In both old and new media, you will find a panoply of stories about growth areas for the future, what types of businesses are succeeding and with what strategies. Remember, it’s never too late to reinvent yourself, adapt your skills to the 21st century. The beauty of a good franchise is their top business goal is to help you succeed. Or they won’t succeed.

4. Interview Franchisees

The most knowledgeable experts about the franchise are its franchisees. Talk to as many as possible and ask them: Is this business all you ever hoped it would be? Are you satisfied with the franchisor’s training and support? Are you able to make the profit you hoped for? What is the most important skill or quality necessary to succeed with this business? Would they purchase this business again? Why or why not? If after you’ve completed these four steps, you think, “Hey, maybe this is for me,” your next step will be to pursue the full process with your favorite franchise. Read its Franchise Disclosure Document, talk to their executives and participate in a Franchise Discovery Day to see if this business is right for you. Then, as we advise all our clients, take the extra step and consult a franchise attorney to help you navigate the fine print. You should get answers to your every question before proceeding any further.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

When looking to buy a new business, one of the most important steps is doing a thorough due diligence. The big question for many: How do you know you’ve done enough? Related: Ready For A New Adventure? Explore New Career Opportunities One thing’s almost certain, if you think you’re done, you’ve probably only just begun. As a franchise coach, we always give our clients a great deal of assistance in this area, suggesting what to read, who to talk to and questions to ask. Ease of research and availability of information is precisely why we often steer folks to a franchise. With a franchise, you can get all the information you need in the Franchise Disclosure Document (FDD), which federal law requires all franchise companies make available to prospective new franchisees. With a little digging, you can learn if you’ve got what it takes — from the money, experience and skills — to succeed with this particular purchase. By far the most important part of the process is talking to franchisees to learn how the system works. You can find their contact information in the FDD. You want to find out: Are they making any money? Would they make the purchase again, knowing what they know now? This critical step separates the truly serious would-be entrepreneurs from those only dabbling — because if you can place calls to strangers to learn the ins and outs of a business, you pass the first hurdle toward succeeding with your own business. Using myself as an example, when I was researching the franchise I eventually bought, I called every one of the 42 franchisees then part of the system. Of course, not all of them called me right back — but that’s because they’re a busy bunch.

Patience And Perseverance

When reaching out to franchise owners you don’t know, a little patience goes a long way. Since you want as many perspectives on the business as you can get, it’s certainly worth your while to try a couple of times to connect. Don’t take it personally if a business owner fails to call you back in a timely manner. The call likely slipped to the bottom of their to-do list. But even the most successful, intimidating franchisees once stood in your shoes, and many will happily set an appointment to speak to you about their experiences, either on the phone or in person. The franchise business that I spent months researching, eventually interviewing 20 franchisees, now provides the lion’s share of my income. And it got there faster than I had projected. Putting the time and energy in upfront is like money in the bank. Its value accrues with time as you gain greater knowledge and intelligence to help your business thrive for the long term. 

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.