Just as with other life decisions, embarking on the journey of franchise ownership requires preparation and due diligence. It’s important to remember that just as you are trying to identify the right franchise for you; the franchisor is trying to find the right franchisees for their system. It’s a partnership that each party enters in to by choice.
So what are some of these considerations? Let me just share a few… and remember, we are here to assist you every step of the way to ensure you are successfully matched with the right franchise system.
[su_accordion class=”faq-tab”][su_spoiler title=”How much will it cost?” open=”no” style=”default” icon=”plus” anchor=”” class=””]The first thing to know is the total investment to get your franchise up and running. This should include the purchase costs, your opening inventory and the amount of working capital you are going to need before you break even. Understanding these costs is very important.
You will also want to explore your potential financing options early on and gain pre-approval, once you have narrowed down your preferred franchise.
[su_spoiler title=”What are you good at, and what are you passionate about?” open=”no” style=”default” icon=”plus” anchor=”” class=””]You don’t have to love fitness to open your own fitness franchise. Nor do you have to do all the work.
When it comes to running a franchise, you’re actually the business owner and can hire people to deliver the services or sell the products; you don’t have to do all of that yourself. Your success is dependent on how well you work on the business, not just in the business.
It’s also important to give critical thought to whether or not your personality allows you to thrive in a franchise system. Our business personality test can help determine that.
[su_spoiler title=”How much time do you need to invest?” open=”no” style=”default” icon=”plus” anchor=”” class=””]You’ll want to give consideration to whether you want a business that is a Monday-Friday operation or would you be comfortable with a business that is open 7-days a week, like the food service industry?
Knowing whether you want to be a passive, semi-passive, or all in type of business owner will help us narrow down the best options to fit your lifestyle.
[su_spoiler title=”What is the franchisor like?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Not all franchisors are the same, so you need to do your research and get to know everything you can about the franchisor. This includes things such as how long has this company been in business, what is its average success rate and how long do franchisees stay on average.
Just because a franchisor is new doesn’t mean it’s not a great opportunity, but the more you know, the better informed your decision can be.
This is where we can really help prepare you prior to your initial discussion with the franchise system. We know all the right questions to ask & can arm you upfront with them.
[su_spoiler title=”What does it take to run a successful franchise?” open=”no” style=”default” icon=”plus” anchor=”” class=””]When you do your due diligence, make sure that you speak to other franchisees and not just the most successful ones. Ask them:
- What were the key success factors they found?
- What were some of the challenges, and how’d they overcome then?
- If they were starting today, knowing what they know now, what would they do differently?
- For those that failed, what were the factors that caused that to happen, e.g. poor location, weak marketing, etc?
- How long did it take for them to start to make a profit?
It’s great to learn from your mistakes. It’s even better if you can learn from those of others so that you don’t repeat them.
[su_spoiler title=”What kind of help does the franchisor provide?” open=”no” style=”default” icon=”plus” anchor=”” class=””]When you take on a franchise, unlike starting your own business, you’re not alone, and that can be a great comfort. Just make sure you know how much support you will get from the franchisor, what other people’s experiences were and how much help the company offered those people when the going got tough. How much support did those other franchisees receive, or were they left to their own devices?
One of the hardest things is asking for help when things are going wrong. But if you know that the support will be there and that the franchisor is willing to help, the process will be a little easier.
[su_spoiler title=”What’s your end game?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Always know your end game.
Are you establishing a legacy for your children, are you looking sell it or do you plan to just run it for a couple of years and then get out?
The better you know and understand your end game, the easier time you’ll have selecting the right kind of franchise opportunity, which fits you in the short term, and supports your long-term objectives.
Running a franchise can be a great way to start running your own business, but you need to understand why you are getting into it, what you are getting into, whom you’re getting into it with and of course how you plan to get out of it. The better you understand the answers to these questions, the greater your success in choosing the perfect franchise for your lifestyle!