There are number of factors to consider as you think about starting a franchise. If you're thinking about starting your own business and want to buy a franchise, then this article is for you. A franchise may seem like the perfect way to get started in business because of the training and support it offers, but before making any commitments, make sure that these items on our list are cleared up first.
The franchise is both a boon and a potential disadvantage to the prospective business owner, if a poor franchise choice is made. The franchise will give you an instant customer base, which can be one of the most important factors in your success as a franchisee. You'll also have access to training opportunities that will help you grow your skillset faster than if you were on your own - not to mention the franchise's marketing resources.
On the other hand, you'll be obligated to adhere to franchise standards set by your franchisor, and you may have limited freedom in terms of how you operate - for example, if a franchise requires that all employees wear uniforms on weekdays, then it will also require them to do so on the weekends.
While many franchise owners feel that the pros outweigh the cons, it's vital for potential franchisees to weigh all their options before signing on - because not every franchise is a good investment.
If you're interested in learning more about what franchises are out there and how they can help your business grow, ask for our exclusive listings and reviews of franchise opportunities. There, you'll be able to learn about franchise costs, franchise opportunities, best franchise businesses for sale - whether they offer food franchises or janitorial business franchising. You can also find a list of the fastest growing franchise companies as well as tips on franchise leadership and franchise ownership.
1. You've researched the market and know it's a good time to buy. You are ready for an ownership role in your own business, you have some savings or have identified sources of funding that will allow you to meet initial requirements with little or no outlay from yourself. A franchise consultant like Franchise@50 can provide you with unbiased, expert advice as you evaluate your options.
2. The franchise is profitable: The franchisor needs money because they have to pay franchise royalties and fees. You need money, too - but the franchise needs more than you do when they start out.
3. The franchise has a proven track record: The franchisor should provide financial information from all its recent years in business (including profits). Shoddy records or lack thereof are an indicator that something is off. We will help you review each franchise's FDD, which will give you a good sense of historic financial performance.
4. The franchise is established in an area that you want to live: You need a franchise where you can see yourself living and working - the location has to be convenient for your lifestyle.
5. The franchise should have good prospects for growth or expansion, with plenty of room for new franchisees down the line if desired.
6. The franchise is a good match for your skills and goals: You should know in advance that you will enjoy working this franchise, or at least be willing to spend the time required to learn it.
7. Choose a franchise that can grow with you - make sure there is room for advancement if needed down the road.
8. You can spend the time needed to make franchise work: You will need a considerable amount of time for franchisee duties, so if you have other commitments that limit your availability, then franchising might not be right.
9. You can spend the money needed for franchisee duties: You have sufficient funds available or a source of funding that you can access without assistance from others.
10. Franchises require an initial outlay, often significant and nonrefundable - don't let anyone pressure you into buying anything before making sure this is something you can afford.
11. You have a franchisee profile that matches the franchise's needs: For example, if you're looking at an entrepreneurial franchise and need to be "hands on," then this franchise is not for you - it would probably require too much of your time.
12. You have a franchisee profile that matches your desires: When buying a franchise, it is important to make sure that the franchise has enough room and opportunity for growth so that eventually you can achieve everything on your life's wish list - or close to it.
13. You will have the franchisee support and training you need: The franchisor should provide franchisees with resources to help them get started, as well as ongoing franchisee assistance.
14. If your franchise is an entrepreneurial one, then it needs to be personalized for individual strengths - not just a "one size fits all" model.
15. You are committed to franchisee duties: You will take the time and be willing to invest your money, so that franchisees can focus on their business instead of its administration.
16. The franchisor should provide franchisees with franchise agreements detailing what is required from them; they need this information before buying a franchise.
17. The decision has been made with franchisee interests in mind: You will own this franchise for the long haul - so you should buy one that is a good fit.
Franchise@50 exists to help our clients make the best possible decisions on a franchise investment and we leverage our experience as entrepreneurs and franchise owners to help guide you through your decision-making process. Many of our clients find it helpful to work with an independent expert instead of initially engaging directly with a franchisor. Our objective insights and market analysis will give you the best chance for success in your new venture. For more information about our process and franchises available in your area, please use this link to be in touch!