Before diving into the world of franchising, there are various questions that you need to ask yourself:
Am I Willing to Take the Risk of Owning a Franchise?
Investing in a franchise can be a long and costly process. You can also fail.
What's Driving Me to Own a Franchise?
Look deep within yourself to understand why you want to own a franchise. Make sure you’re doing it for the right reasons and have the skills to make the business work.
Can I Afford a Franchise?
As a franchisee, all of the capital to own and operate the business comes out of your pocket. You need to be in a good financial place to start a franchise business.
Do I Have the Right Personality for Franchise Ownership?
A franchise business owner should be a people-person. Franchisees have to manage staff, deal with customers and vendors, and get the message out about the business. A meek and shy person will find this difficult.
When is the Best Time to Invest in a Franchise?
The time to invest in a franchise really depends on the individual. Franchising comes with a built-in fan base, name-brand recognition, and the chance to be your own boss. On the other hand, being a franchisee comes with great financial risk, little financial privacy, and limited control. Before jumping into franchising, ask yourself serious questions about why you want to do it and seek the advice of a Franchise Consultant.
Franchise Consultants connect franchisors with entrepreneurs who want to open a franchise. Based on your skills and background, the consultant will connect with franchisors who have companies that align with what you can offer the franchise business. Since the franchise consultant gets a commission from the franchisor, their advice is free for you. You’ll also know if you are cut out for franchise ownership based on working with the consultant.
If you are cut out for owning a franchise, you’ll be invited to a franchisor's discovery day. Here, you can ask franchisors questions and get all the information you need to know before owning a franchise. The due diligence that comes with speaking with a franchise consultant and attending a discovery day makes buying franchises less risky than starting a business from scratch. If after the franchisee validation process, you believe this brand is a good investment, then owning a franchise business could be for you!
Franchise Advantages and Disadvantages
As with any venture in life, franchise ownership comes with advantages and disadvantages. Pros of franchising include being able to follow a proven system, having great support and training, lower failure rate than independent business, and not necessarily needing to have experience to succeed. On the other hand, franchise disadvantages include limited control over the business; the business could be difficult to resell; and leadership changes due to acquisitions can shake up the system. Speaking with a Franchise Consultant will help you get a better understanding of specific brands and if you’re a serious candidate for franchise ownership.