3 Steps to Finding the Right Franchise for You
For many reasons people consider escaping the hum drum of 9 – 5 and look to purchase a business. Along the way they think…. “Hmm, I might buy a franchise.” The next question is always, “what type of franchise should I buy?”
Franchising is a triangle with three steps you must take before you find the right Franchise for you – one that is profitable, easy to operate and a pleasure to be in every day.
To achieve this, you have to consider:
- Can YOU be a Franchisee?
- Can you work with this FRANCHISOR?
- Is the FRANCHISE BUSINESS on offer profitable?
1. Can YOU be a Franchisee?
It is a known fact that some people are just not suited to franchising.
A franchisee needs to be an Entrepreneur yet they have to be willing to take instruction – a contradiction in itself. This has lead to the creation of the term ‘Franpreneur’ – a person who builds an empire within a franchise system.
Being a franchisee means that you need to have the skills to run a business and if you don’t then you need to know where to go to get them or who to get on your support team to help you.
You have to be a leader, one who implements the system that you have bought into, in your own individual business unit. One who leads and trains the team to follow the system that produces a quality product with exceptional customer service.
If you feel you can do this then it is off to find the Franchisor for you.
2. Can you work with this FRANCHISOR?
Choosing the right franchisor for you is imperative. You have to see yourself working with this brand. You have to be a fit with their vision and values. You will be with this franchisor for the duration of your franchise agreement.
Choosing the right franchise system for you is the secret, one that suits your skills and abilities as well as ignites your passion and ideals.
To investigate a franchisor, you will need to ask a lot of questions around their systems and processes. Then you need to confirm the franchisors answers with other franchisees in the system to ensure that the reality matches the promise.
Things to consider are the set up costs and length of the franchise agreement; the operating costs such as royalty and marketing fees; how much support is given to franchisees and what training is available, both at the beginning and during the franchise agreement. Most importantly can you grow your empire within the franchisors brand mix? Don’t just look at the initial opportunity, but the opportunities for growth with this franchisor into the future.
Now that you know you can be a franchisee and you have found the right franchisor, it is time to find a profitable business opportunity within this brand.
3. Is the FRANCHISE BUSINESS on offer profitable?
Everyone assumes that a franchise business will be profitable. This is not always so. There are many factors that make a business profitable; these factors still exist when you are buying a franchised business. Sure the franchisor has some experience in choosing sites and areas within which to operate, but it is imperative that when you are buying a franchise business that you do extensive Due Diligence. The same as you would do if you were buying any small business.
Don’t assume that if it is a franchise then the franchisor will have done this due diligence for you. They don’t. This is your responsibility.
Prepare budgets based on sales knowledge that the franchisor may have. Prepare a business plan on how you are going to operate the business over the term of the franchise agreement. Research the lease and the site where the business will operate. Know who your target customer is and be sure they live work or play in the area that your franchised business operates.
There are no guarantees in franchising, but there is security in buying into a proven franchise system with profitable and happy franchisees. Be sure you take these three steps when considering buying any franchise. Your future success depends upon it.
“The opinions expressed by Smallville Contributors are their own, not those of www.smallville.com.au"
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