Where Can You Find a Franchise to Buy?

Here are some useful resources for finding available franchises.

There are several ways you can find franchises and purchase them. As with any business transaction, due diligence is necessary, and if it sounds too good to be true, it probably is.

Directly Through the Franchisor: An obvious place to look for franchising opportunities is with the franchisor itself. Most franchisors will list information on their corporate Web site or can send you an information packet.

Internet: There are dozens of directories listing franchise opportunities. Many sites offer additional features such as advice on franchising, franchise law, and financing. One downside to searching on the Internet for franchises is the sheer volume of information available online. Here is a listing of some of the franchise opportunity listings currently on the Web:

• Franchise.com
  
• International Franchise Association
  
• FranchiseLife.com
  
• Franchise-Zone.com
  
• FranchiseSolutions.com
  
• BizBuySell.com
  
• FranchiseAdvantage.com
  
• BusinessNation.com
  
• FranchiseGator.com
  
• FranchiseAmerica.com
  
• FranchiseWorks.com

Franchise Brokers and Consultants: Brokers and consultants generally represent a select group of franchise companies and have a set of criteria or a code of ethics required of the franchisors in their database. Some charge a fee to franchisees for their services and some receive compensation from the franchisor once the deal is finalized. The downside to this approach is that your search for the perfect match may be limited to a broker's or consultant's database of approved franchise companies. The upside is that franchise brokers and consultants know the companies they represent very well - they meet executives face-to-face, review Uniform Franchise Offering Circulars (UFOCs) and franchise offerings, and meet with existing franchisees of that company.

Trade Shows: Franchise trade shows are held around the country throughout the year. Attending a show is a great way to find out about opportunities you were not aware of and to research companies that you are interested in. You can meet with franchisor representatives in person and get a good feel for the company. Click here for a listing of shows.

Newspapers: The classified section of your local newspaper may list opportunities. Most established franchise companies, however, do not advertise in newspapers, so do not limit your search to newspapers alone.

Trade Publications: Trade publications target prospective franchisees, spotlight opportunities, and list advertisements from franchisors. These publications can be print magazines, newsletters, or online journals and Web sites.

Be aware of franchise reselling. An existing franchisee may want out of an agreement. A franchisor may be reselling a franchise because a franchisee has gone belly up. See if you can track down the original franchisee to find out what happened. These opportunities may be legitimate - a franchisee may have simply wanted out for personal reasons unrelated to the performance of the business. Do your due diligence by thoroughly investigating the opportunity (i.e., verifying its legitimacy with the franchise company) and retaining a franchise attorney to protect your interests and rights.

Also read " Should You Consider Buying a Foreign Franchise?"

Get more tips on researching and evaluating franchise opportunities from AllBusiness.com.

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