dipper: Hi, As an Accountant I have had many clients that approach me with the view to purchasing a franchise. In purchasing a franchise you are buying the rights to access a system or process and use the name attached to it i.e. their IP. So with this have they documents their processes well and provide a manual or do they just provide you with a name? Do they provide you with any training, it sounds like your job is in this area but in your job you may never of had to generate sales, balance the bank, pay suppliers and complete GST returns (be prepared to spend up to five hours a week just on admin) With franchises you have to be careful of the ties attached to it as the franchisor will always be trying to protect their interest so they can sell more franchises. With this check to make sure that you have no minimum requirements to purchase or sell items and if you do be careful as to the ramifications of not adhering to the requirements i.e. forfeiture of the franchise without financial recourse. Other areas to check: Is the franchise for a fixed term or do you need to outlay further $ in the future? On selling the franchise (we all want to retire one day and an exit strategy is needed as soon as you start a business) can you openly sell it or do you have to sell it back through the franchisor whom take a cut of the price or have control over who purchases it what can cause delays. Check to see if you can add third party items to the product list without the franchisors approval You normally have to pay a royalty and marketing levy, with this what do you get for the $ Do you have a set area from which you can sell, if so can this area be changed and what happens if you sell to someone outside the area? Check the terms of trade for purchasing items From a financial perspective you need to consider the working capital requirements i.e. how money do you need to cover say three months of expenses without selling anything What are the terms of trade for selling item …i.e. what are the typical debtor days or is it all “cash” What is the capital requirement for the purchase of equipment and do you have a requirement under your franchise agreement to replace equipment that is of a certain age? I hope that some of these points help you.