“It takes money to make money” holds true for most business ventures, including investing in a Canadian franchise. During your research phase, you may need to spend on several key areas before making your investment.
Business Plan Creation
A solid business plan is essential for any business. It helps you stay organized and meet your goals. Lenders also require a comprehensive and realistic business plan before providing funding. If you’re new to writing business plans, consider investing in business plan software, online tools, or professional help.
Franchise Legal Assistance
Understanding the franchise disclosure document (FDD) is crucial. It outlines your rights, responsibilities, and key information about the franchise. A legal professional experienced in franchise law can review the FDD and your franchise agreement to ensure you fully understand the terms and spot any potential issues. They can also assist with other legal aspects, such as your building lease.
Spending money before investing in a franchise might seem counterintuitive, but being well-prepared is essential. A franchise, like any business, may not be immediately profitable, so ensure you’re financially ready for all commitments.