Buying a franchise: what you need to know: find basic franchising information quickly and easily at Franchise.org.

"The Profile of Franchising: 2006" study series by the International Franchise Association Educational Foundation and FRANdata found that the number of concepts was growing in 17 of 18 industry categories. Only the travel industry declined. Nearly 900 concepts began franchising from 2003 to 2005 with increases ranging from 67 percent in retail food to 4 percent in personnel services.

There should be a franchise available for every potential entrepreneur as the array of choices increases. While a franchise provides a quicker and simpler path for would-be business owners, it isn't risk-free. The International Franchise Association says franchising may not be suitable for everyone.

Disclosure

Significant attention is paid to the franchise disclosure document, which many consider to be the most valuable tool available to a prospective franchisee. The document is prepared by franchise systems to satisfy the pre-sale disclosure requirements mandated by the U.S. Federal Trade Commission and the franchise laws of many states.

The disclosure document, sometimes 200 pages in length, includes information about the franchise's history and business model, terms of the agreement and financial statements. The association strongly encourages prospective franchisees to seek professional guidance to aid in understanding this document.

Importantly, it also lists recent litigation, contact details of some current and former franchisees, and information about franchise agreements that were recently terminated. Potential investors are especially urged to contact former franchisees to require if they were successful and received the support and services they were promised.

FTC Consumer Guide

Another resource available to the potential investor is the Federal Trade Commission booklet. "The Consumer Guide to Buying a Franchise," which helps the potential investor to understand how to investigate franchise opportunities and know what questions to ask before investing. The government guide is available on the association's site, www.franchise.org. The guide includes a checklist potential investors should use to assess how much money they may have to invest, their ability to operate a business, and their goals and expectations.

[ILLUSTRATION OMITTED]

Additional Resources

Those interested in acquiring a franchised small business are encouraged to consult with professionals, such as accountants and lawyers, who specialize in the industry. Those professionals who are IFA members are featured on the association's Web site under "Listing of Supplier Members."

Franchise investment information is available on a searchable database at www.franchise.org, in the "Franchise Opportunities" section. The database is searchable by company name, industry category, investment level, or companies that provide financial incentives for veterans. Search results will yield a list of hotlinks to individual company profiles that contain contact information for the franchise company, a brief description of the business concept, the number of franchised units and length of time the company has been franchising, cash investment required, the training the investor will receive and the name of the person to contact if interested in buying a franchise.

Veterans interested in acquiring a franchise may be eligible for financial incentives via a special program called "VetFran," which is available only through participating association member companies. To date, nearly 800 franchised small businesses in 45 states have been acquired by veterans through the program that is supported by more than 200 companies. VetFran has been recognized by the U.S. Dept. of Veterans Affairs with its Support Sector Champion Award for expanding business opportunities for veterans. To view a list of participating companies, with information on their discount packages and hotlinks to company profiles, visit www.franchise.org and click on the "Franchising for Veterans" link located on the homepage.

Finally, potential investors are encouraged to visit a trade show, walk around and examine the exhibits and ask questions. Franchise systems come together from near and far to exhibit their offerings at these events where company representatives are available to answer questions potential investors may have. In the upcoming months, trade shows are scheduled across the nation. The Franchise Expo South will be conducted Jan.11-13, 2008, in the Miami Beach Convention Center and the International Franchise Expo is set for April 11-13, 2008, in the Washington, D.C. Convention Center. Veterans will be admitted at these events without charge.

[ILLUSTRATION OMITTED]

Other Helpful Information

A number of online learning courses, approved for Certified Franchise Executive credit, are offered in cooperation with CertiLearn. One that might be of particular interest to prospective investors is "Franchising Basics," a free introductory course to franchising. This course is designed to provide individuals with a comprehensive introduction to franchising, especially those individuals who are considering investing in a franchise as a business. The course describes how franchising works as a business methodology, the questions to ask, the laws and regulations that apply to franchising, the companies and types of businesses that comprise the franchising sector, the advantages and disadvantages of franchising, the many different forms of franchising and sources of additional information. The course is intended to help individuals understand and evaluate Uniform Franchise Offering Circulars.

Prospective franchisees can take advantage of an online discussion forum to participate in exchanges that will enable them to better understand what is involved in franchising through reviewing questions, answers and ideas of new and existing franchisees. The Prospective Franchisee Forum is conducted through a daily e-mail digest, which includes new postings from the previous day. Participants comment or post a question right from their e-mail or if they prefer, they can visit the IFA Web site to follow the threads or review other topics. The topics will range from franchise investigation steps to site selection to long-term growth.

A document also available on the IFA Web site is titled, "An Introduction to Franchising," which is designed to introduce young people to franchising. The online booklet offers useful advice, including a definition of franchising and a description of the two types of franchises: product distribution and business format. The document explains commonly-used terms and discusses how to begin a search for a franchised business. An entrepreneurial assessment helps readers determine if their personal characteristics match those of achieving entrepreneurs.

Those seeking to translate their career experiences into franchised business ownership will have plenty of questions. The document "Key Legal Questions to Ask" provides topics and questions to consider. The topics include personal liability and obligations of franchisees and family members, locations and marketing, trademark issues, renewal rights and sources of essential products.

Once prospective franchisees have reviewed some of the legal parameters involved in operating a franchised business, they can review the online document "Frequently Asked Questions About Franchising." This document provides answers to 19 of the most commonly-asked questions concerning franchising, including how widespread franchising is, which type of investment is involved in acquiring a franchise, what are some of the drawbacks of owning a franchise and what are trends within the industry.

For more information, contact the IFA Educational Foundation at 202-628-8000. Visit Franchise.org for more details on available resources.