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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.  

How often have you heard that women over 50 are getting left behind in the job market? Related: 10 Tips For Job Seekers Over 50 Whether it’s women who were laid-off mid-career from high-paying corporate jobs during the recession or women who took some years away from the workforce to raise their children — many report finding it almost impossible to land a job. Turns out, it’s not their imagination. Women over 50 have been disproportionately left behind by today’s economy, according to a recent report from the Federal Reserve Bank of St. Louis. In a study that compared two-year periods before and after the Great Recession, a far greater percentage of women after the recession had joined the ranks of the long-term unemployed. Whereas in 2006-7, women over 50 accounted for less than a quarter of the long-term unemployed, by 2012-13, they had risen to half the long-term unemployed. Of course, in that same period, the long-term unemployed rose among all age groups. It’s just that women over 50 were disproportionately affected. Many of these women, highlighted in a recent New York Times article are highly skilled, from experienced attorneys to PhD holders. At least one has been told by employers that they’re looking for someone younger. So what is a highly experienced, talented person still in the prime of life to do with all she still has to contribute to society? How about embarking on a new business to call your own. Opportunities abound to make money and explore one’s interests, but one way you may not have considered is in the growing franchise industry, where you can find a business to suit your interests from thousands of franchise companies. By the middle of 2015, franchising grew faster than the rest of the economy for the fifth year in a row, according to a forecast by the International Franchise Association Educational Foundation. Certainly, franchising is a lot more than car dealerships and fast food restaurants. You can find good opportunities in business or personal services. And even if you have no direct experience in the industry, the beauty of franchising is that the operation comes with a support team and training to help you succeed. The best thing of all about starting your own business is that the fruits of your labor go directly to your own pocketbook. No more working your tail off for an employer who, unbeknownst to you or unrelated to your own productivity and success, has decided to cut your department. To make the best match to capitalize on your skills and experience, consider consulting a franchise coach or two who can help you narrow down your options and show you opportunities in fields where new businesses are flourishing. So take control of your career and resolve to start 2016 by investigating your options for owning your own business.

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) 278-5489. 

It seems every time you look at the business bestsellers list, there’s a new book for how to get rich quick, become a successful entrepreneur or take control of your own life.

We all seem to be searching for some version of the same thing: a chance to reach your potential in a career where you’re in control. For most of us, the idea of starting a business of one’s own inspires more fear than excitement, and the incipient desire remains an unfulfilled dream.

Yet, there is a great way to go into business for yourself without all the unknowns. That is with a good franchise, which comes with a tried-and-true system, as well as training and support for you and your staff to help you get across the finish line to smooth operations and profitability.

Before you sign any contracts, you have the ability to know exactly how much money you’ll need and what you’ll be getting for your money. That’s because franchise companies are required by federal law to disclose a virtual guidebook to their product in the form of a franchise disclosure document (FDD).

Not all franchises are created equal. Some are better than others, and you have to delve deeply to find out the truth of what they’re offering and how their promises match reality. So rather than rely on some cursory preconceptions you may have about a well-known brand, commit to doing a thorough due diligence on any business you seriously consider.

What you need to know:

• The franchisor’s track record

Do an Internet search. You can find history of litigation, bankruptcy and information about their top executives in the FDD. (Items 1-4). You want a company in good standing that can stand behind you all along the way.

• The costs

You should get a very good picture of all your startup costs, from the initial franchise fee through the cost of setting up your office/store, ongoing marketing and any ancillary costs like insurance and legal fees.

• Details about the franchise system. How does it work? Is it easy to follow?

Franchisees are your best source for answers to these questions. The franchisor can tell you how it’s supposed to work, but the franchisees will tell you if it’s working. Find a list of franchisees in the FDD.

• The nuts and bolts of what it takes to run the business

What skills are required? What experience may be helpful? What is the day-to-day life of the owner like? Does this suit you?

• Do you like the management staff?

You need to have a good rapport with the people you’ll be dealing with on a regular basis. Do you feel comfortable talking to them? Are they receptive to your questions, concerns, etc? Do you trust them? You should have multiple conversations with key personnel on the phone and in person before you sign any contracts.

• Is the franchisor’s training program and support sufficient?

This is critical information, especially if you’re entering a business in which you have little experience — which is the beauty of a franchise. You can change your careers and try something different. So make sure the training and support are up to par by checking in with franchisees.

• Would franchisees buy their business again?

This question seems the ultimate test of a franchise’s merit. Don’t forget to ask this question of franchisees.

Whether you start a business from scratch or buy a franchise, the decision should be preceded by a deliberate methodical process of review. You can be sure with the huge array of franchises available, you can find one that suits your needs.  And when you make a good match to a franchise with a great record of success, you can start your new business with the wind at your back.

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.

Dan spent 27 years as a successful entrepreneur and coach.  In 2010 he started the next stage of his career – he bought a franchise. And what does Dan say about his decision to buy a franchise?  He’ll tell you “It’s the best business decision I ever made.”  You can reach Dan at [email protected] or at (484) 278-4589.

© Dan Citrenbaum 2025

So you’ve selected a franchise and have your initial investment capital saved and now you want to know: How much money will I make? To answer the question you’ll need to weigh your costs against expected potential revenues.

The beauty of a franchise is you actually have a good shot at figuring all these numbers out. Between the financial disclosure document (FDD) and information available from existing franchisees, you can get a good feel for expenses, as well as potential revenues, so long as you factor in differences related to location, local market and, not to be forgotten, the range of talents and experience individual franchisees bring to their businesses.

Why is it so important to do this math upfront? In a phrase, operating capital.

Lots of folks eager to become entrepreneurs for all the usual reasons —  to control your own schedule,  achieve work-life balance, be your own boss, and make more money — may neglect to factor in all the capital requirements.

At the beginning of a new business comes the transitional stage. This means you need money to run your business until you learn your way around a new market, new procedures and customer care. During this transition, you won’t generate enough revenue to cover expenses. So it’s essential you have enough capital to keep the circuits humming.

Your first task is to get a realistic sense of how much capital you need to get started. Fortunately, the FDD will provide this view of your costs. Some companies will even provide an idea of potential earnings. A franchise coach can help guide you through the process, but it’s never too early to start your research.

Three Keys to Understanding Your Potential Earnings

Know your Timetable

Most businesses take three to 12 months to start earning profits. The slowest to become profitable are franchises with a lot of costs or ones that take longer to build a customer base. And if the margins are thinner, you need to generate more volume. For example, a document shredding franchise, which requires expensive equipment, may take as long as 18 months to run in the black but can eventually become quite lucrative. Retail franchises can be among the quickest to turn a profit because a good location will quickly draw customers.

Accurately Estimate Your Fixed Costs

The franchise disclosure document provides a list of all your costs — everything you need to open — which are far more extensive than just the initial franchise fee. Examples of the types of fees you’ll find under Items 5 and 6 in the FDD are: IT and system setup and initial marketing. Then comes ongoing fees, such as local marketing additional training, ongoing IT or software costs, costs for audits, insurance, and on and on.  In short, all of the costs you would expect to encounter.

In your calculations, you should also factor in the cost of consulting an attorney and accountant, which we strongly recommend.

Estimate Potential Income

Flip now to Item 19 of the FDD to read if the franchisor has made any earnings claims. Only about one-third of franchisors make earnings claims, and how franchise companies address this issue varies.

To fill out the picture, your most important information can be found in Item 20, where you’ll find a list of franchisees. You want to call as many franchisees as possible, preferably those operating in locations similar to yours, to verify all the information in the FDD and get an idea on profits. Word to the wise, avoid the question: How much money do you earn? Instead, try a softer approach, such as: “How long until I can expect to make $100,000.” Then try out different income amounts.

All three steps are essential to your preparation. Doing the due diligence required to choose the right franchise upfront will help you experience the pleasure of being your own boss for years to come.

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.