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Important information

• Additional Info:

  As of May 18, 2010: A consumer has contacted the Better Business Bureau that the company the offered a opportunity to invest in a business called MindBody FX.
  
  To learn more about franchising please read the following tip:
  
  FRANCHISES
  
  You should look into any experiences of existing franchises. Again, take into consideration area saturation and the rights to exclusive territory.
  
  In the case of all franchise operations, the Bureau suggests before signing any contract you have it reviewed by a lawyer and/or accountant who is familiar with franchise operations. Be sure you understand who owns what in the agreement.
  
  TIPS FOR PEOPLE INTERESTED IN BUYING A FRANCHISE ARE:
  
  - Understand what self-employment is all about. You have to work long and hard when you're self-employed.
  - Draw up a model of what you need the business to do for you. For example, what return are you looking for? Where do you want to be in five years? Does the usual future-projection work?
  - Buy a business able to demonstrate it can give you what you want, based on the models and brainstorming you've done earlier.
  - Read and understand the contents of the franchise agreement and other documentation.
  - Talk to existing franchisees. Do some basic research into the franchise system. Most existing franchisees are quite willing to talk about the business.
  - Confirm any oral representation made by the franchiser. Get it in writing.
  - Get professional advice.
  - Visit the franchiser's corporate office.
  - Meet the franchiser's operational staff.
  - Demand to see a Uniform Franchise Offering Circular (UFOC) and review it carefully. This prospectus-like document lists current franchisees, those who have left or quit and gives financial statements of the business. It should give you the true picture of the franchise operations beyond the glossy sales brochures. UFOCs aren't legally required in B.C., although there is a version in Alberta, and tough ones are the law in most parts of the U.S. But demand one anyway, and run away - fast - if the franchiser refuses.
  - Carefully go over the nuts and bolts of the franchise system, probably with the help of professional advisors. There are a lot of rip-offs built into some franchise systems essentially making a franchisee a captive customer forced to pay high prices for everything. Always question where the franchise company makes its money.
  - Capitalize the business properly. It's the first thing franchisers look at. It's also important to lenders.
  - Get the most out of the initial training. It's when you learn the system, and it's also often when you make or break it.