Before deciding on a specific franchise and becoming a franchisee, there are a few questions you should ask yourself. Being a franchisee is a huge financial commitment; it is crucial to your success as a franchise owner and operator that you are fully prepared for the venture ahead.
In order to find success with your franchise, ask yourself these five questions beforehand:
1. Is the Brand Forthcoming?
When it comes to purchasing a franchise, you are interviewing prospective companies much like they are interviewing you. You both are looking to see if the two of you will be a good match, for a solid franchisor/franchisee relationship is vital to your franchise’s success and increased productivity. Research different franchise brands at FranchiseExpo and other sites of the like in order to narrow down your choices.
When it comes down to choosing a brand to invest in, not only should you be looking for a company you are passionate about, but you also need to be looking beyond the surface. If franchisors are not forthcoming about certain information, or there seems to be some misnomers within their business practice, it would be a wise idea to steer clear. Regardless of your personal ethical practices, if your name is attached to an unethical company, down the road you may find trouble with companies trusting you.
2. Is It a Viable Industry?
While many people assume franchising to be an industry in and of itself, it’s not. A franchise is a business model used in many diverse industries. Look at the markets your potential franchise opportunities fall into. What is their projected longevity? Is the company you are looking to franchise with sustainable? How is it financially? Asking these questions can help you determine what franchise opportunities will last.
3. How Well Do Your Skills Match?
Knowing your strengths and weaknesses can help you determine what industry and franchise to pursue. Your business’s success depends on how well your skills benefit the franchise. Although there are franchise opportunities that allow absentee ownership, the majority of franchises require the owner to operate the business. Because of this, if your skills do not match with the daily tasks you will be faced with, you could run into business trouble.
4. Can You Afford the Franchise Business?
Franchising is expensive. Not only do you have to purchase the individual franchise itself, you have to purchase the business’s needs, pay your employees, pay yourself, and in some cases, pay a monthly or yearly allotment to the franchisor. Although opening a well-known franchise already has built-in popularity, if you still cannot make ends meet, the business cannot survive.
5. Will Running a Franchise Make You Happy?
Although this might seem like a no-brainer, this is a question many people assume and do not actually answer. But owning and operating a business is exhausting. Before heading down the franchise road, make sure owning a business is something you will actually enjoy. If you don’t, you will have invested a lot of money into something you hate.
Do your homework so that you can turn your new franchise into a powerful financial player.