Some of the key areas you should look at in a franchise business to avoid making a very costly error in judgement. Among them:

- How would your franchise business be affected by an economic slowdown? Typically luxury products and services, non-essential services and goods will suffer more than those seen as cost saving or essential.

- How dependent is the franchise on area/socio-economic mix? The area the business started and the area you will operate the franchise in are likely to be different; evaluate the impact on earning potential.

- Some franchise operations succeed because of the founder or current management team. What would be the impact of a change in the business’ top level?

- Profit margins must be high if you are going to be able to pay the franchise fees as well as yourself.

- Your franchisor should be offering a somewhat unique product or service otherwise it is likely you will be getting direct competition from other franchises, independent retailers and chain stores.

- A good franchisor will permit you to speak to any of the franchisees he has up and running. Try and speak to as many as possible.

- Bear in mind that piloted and fully audited franchise operations give the best chance of success.

Check out the the BFA website to get more information !