In any business venture, there are always advantages and disadvantages. Same goes if you want to buy franchise, it has a lot of benefits yet it also comes with a lot of downfalls. A franchise opportunity is great and it’s easy to operate, you can instantly run it without wasting too much of your time. Applying for a loan is also easy if you’re going to franchise rather than start an entirely new business.

However, a franchise opportunity is not an assurance you’ll earn big time. In fact, it is also possible you’ll lose your money. To avoid losing your money, here are some common points you need to consider if you plan to buy franchise.

1. Don’t Tumble Over Too Much Publicity – Franchising is most of the time over publicized sending wrong notions to the public. Franchising is not an assurance that your business will not fall. Some popular personalities are aware of this over publicity that they too have agreed that franchising is not as easy as it seems. A franchise adviser named Joel Livaba once said that a franchise opportunity is great as long as one should be realistic about it. A long time marketer Sean Kelly also said that there’s no such thing as low risk in terms of business because not all franchising venture flourishes just like McDonalds.

2. There’s No Harm in Calling – Before you buy franchise, it is better to check on the FDD or the Franchise Disclosure Document which contains contact information of multiple franchisees. There’s really no harm in calling some franchisees and ask them about their experience. By doing so, you will have a better grasp of what you’re about to venture in. Of course, make sure to ask franchisees the most important question and that is if they still want to do it again if given an opportunity.

3. Ensure a Back-up Fund – One of the most common mistakes in franchising is giving everything without a back-up fund during lean times or emergencies. Starting up a franchise involves great amount of money and some franchisee tends to give all without saving some for the future.

4. Have a Way Out – In case you reached the darkest moments of franchising, you must have a ready plan to get out of such situation. First, you must have read the agreement or contract right before you agreed to any of it. You may lose everything when franchising; there’s a possibility of foreclosure even before the contract ends, you may have a pending loan you need to settle and you don’t have money left because you’ve given everything to start up the business. Overall, you must be clever enough to have an exit plan in cases like this.

5. Always Do Reality Check – Franchisees are sometimes blinded with excitement that they tend to ignore reality. You must question yourself if the franchise is easy to market and will you profit from it. You must not lose your focus and always get in touch with reality.

6. Is it Profitable? – Just like any other business, you must check the financial history of the franchise. Financial reports must be checked so you can weigh things before investing.

7. Business is Business – Franchising is a business so expect to maintain a business relationship. Although there are some franchise owners who wants to help, it is still better to take caution. In business, money is the main priority.

8. Make use of a Third Party Consultant – Consultants are there to offer you a hand in decision making. Never fail to have your own franchise consultant, this way you’re assured your consultant will tell what you need to know about the franchise.

9. Spend a Little for a Good Lawyer – Venturing into the world of franchising is tricky so you need to have a good and reliable lawyer to help you with your franchise contract. So invest a little in your lawyer to expect a good service.

10. Don’t Take the Bait – One of the most common misconceptions in franchising is assuming that all the hottest and newest franchise can help you earn a sizeable income. This is not true! Franchising is based on proven methods and success therefore a new franchise with no track record is a not guarantee that it will flourish.

To venture in the world of business may take years of experience, if you’re an aspiring entrepreneur then take these points seriously to avoid the common mistakes in franchising business.