[Sample] 5 questions to ask before buying a home care franchise

Sample article for testing the newsroom layout. The agencies, people and figures below are fictional.

A home care franchise can shorten the path to a working agency. It can also lock you into fees that eat your margin for ten years. Before you sign, get clear answers to these five questions.

1. What are the total fees as a share of revenue? Add the royalty, the marketing fund and any technology fees together.
2. How many units closed or transferred in the last three years? A high number tells you more than the sales pitch.
3. Is your territory protected? Ask how the brand handles a second franchisee who wants the next town over.
4. What does the brand actually provide? Training, software and lead generation vary widely between systems.
5. Can you talk to five current owners? Choose them yourself from the list, not from the brand's suggestions.

A note on timing

Most new owners in our fictional survey said it took 12 to 18 months to break even. Plan your savings around the longer number.

Talk to a franchise lawyer before you sign. The fee is small next to a ten-year commitment.