Purchasing and running financial franchises provides various benefits over starting up new businesses. A franchise will have a name that is already established, an existing business plan that has been tested and ongoing support from the franchiser. When you make a franchise investment, the ground work will have already been done for you.

As with any business, there are no guaranties when you buy a financial franchise. You will need to meet with the franchiser to discuss the business, take a training course and make an investment. Be certain the franchise you are considering is right for you.

There are many things you should consider before investing in financial franchise opportunities, such as:

1. What costs are involved such as purchasing fees, marketing expenses, royalties and inventory?

2. The areas in which you must conform to the franchiser's guidelines on how the business is to operate.

3. Whether the financial franchise has a commonly recognized name or brand.

4. Will the franchiser help you find the right location for your new business?

5. How many employees will need to be hired and trained?

Action Steps
The best contacts and resources to help you get it done

Hire a consultant to determine if a financial franchise is viable

A franchise consultant will help you investigate whether purchasing a franchise will be beneficial for you, what type of franchise you are most suited to run and how to get started once you've decided to make the investment.

I recommend: Talk to consultants at The Bibby Group and Franchise Buyers Network to help you through the process.

Locate a low investment franchise that offers tax services

A tax service company is a very profitable business. You will help businesses and individuals prepare their annual tax returns and help people understand new and changing tax laws.

I recommend: Find the right tax service franchise for you. Speak with the people at Liberty Tax Service, Roni Deutch Tax Center and Colbert/Ball Tax Service and discover if you want to partner with them.

Purchase a B2B financial service franchise such as a business broker company

As a business broker, your job will be to work with people who are selling businesses and people who are buying business, and match the right people together to make the final sale. You will help determine the value of a business, interview potential buyers and oversee the negotiation process until the sale is completed.

I recommend: Find business broker franchise opportunities with First Choice Business Brokers or Murphy Business & Financial Corp.

Invest in a financial franchise within the insurance industry

Insurance is a very lucrative industry because everyone needs to have insurance. Start your own franchise, become an agent and help others get the insurance they need.

I recommend: Brooke Insurance, FEDUSA and InsuranceOnly all offer insurance related franchises.

Consult a lawyer to guide you through the process of investing in financial franchising

A lawyer will help you to understand the contract that the franchisor will give you and explain the legal obligations you will have after making the purchase.

I recommend: Get help from franchise law experts at the Law Offices of Nancy L. Lanard or the Franchise Law Team.

Confer with an accountant - franchise investment is no small thing

A certified public accountant investigates the financial history of any franchise you are considering, explains the expenses involved in the process and helps you assess your long-term earning potential.

I recommend: Find an accountant at AccountantsWorld or the CPAdirectory.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Find out if financial franchises are regulated by your state government and, if so, in what ways.
• •  Investigate the growth rate of the franchise you are considering.