Do Not Buy a Franchise Just Because it is Trendy, Cool, Or the Latest Fad

It often amazes me that franchise buyers want toLet me explain it to you this way, my dad was a
get in on the ground floor of the next latest trend.fighter pilot in the United States Navy, and he told
They see some new, cool, and fad business that hasme he felt he never wanted to fly any military
lines out the door, and all the sudden they decideaircraft in combat that was the first 200 of that
they must have one, because they see nothing buttype built. In other words, he wanted to fly
dollar signs. After all, they think with that manysomething that was proven, battle ready, and
customers constantly in line buying the products orMurphy proof. Of course, things get much more
services it must be a great business. However, Iserious when they are shooting live ammunition at
should warn you not to attempt to buy the coolestyou, and heat seeking missiles, but I think you get
and latest trendy franchise offering. Why you ask?the point.
It's simple really. You see, most franchise agreementsIt is unwise to buy a franchise of something that is in
are for 10 years. That means if you buy thevogue today, but might be out of favor or flavor
franchisors perfect business model that supports thistomorrow. Interestingly enough, you don't have to
latest trend, then you are stuck with it for a decade.look very hard in the history of franchising to see all
You need to ask yourself in 10 years will this still bethe failed franchising systems which have come and
the kind of business where people will be lined up atgone. In fact, you can barely pick up a franchise
the door buying the product and even if they will,directory of businesses for sale from any of the last
there will be other market entrants and competitorsfive years without noting that half of those
that you'll have to deal with, and they will definitelyfranchising companies no longer exist. See the point?
cut into your cash flow.Please consider it.