Basics of Franchising
If you have ever dreamed about being your own boss, then owning a franchised business can be a promising path to success. For many, the benefits of going the franchise route far outweigh having to start a business from scratch.
From starting with a brand that is already known, to ongoing support, owning a franchise can instantly set you up for professional victory.
Before you begin the process of franchise ownership however, there are several facts you will want to know.
There is a cost involved
There are fees and costs involved when starting a franchised business. They vary from franchisor to franchisor. There are also financing options available in most cases. The best way to understand these costs is to talk with a professional franchise consultant. But speaking of costs, there is NO COST to using a franchise broker because franchise brokers get paid by the franchise company, not by the person buying the franchise.
There is also a time investment
It not only takes money to start a franchise, but it also takes time. After all, this is your new business! Do not be surprised if it takes more time to be your own boss than it did to work in a cubicle. But there are also franchise options such as semi-absentee ownership which allows you to keep your current job while also owning your own business.
You will be a licensee
When you buy a franchised business, you are buying a license to use the franchisor’s branding, logo, marketing, and have access to their proprietary business model. In other words, you are buying into a proven business system that has taken, in most cases, years to create.
You will have to qualify
Because the franchisor is laying its reputation on the line by bringing you in, you will need to prove that you can successfully run the business. They will look at your financial qualifications, business experience, and other factors that will give them insight into your ability to succeed.
Franchisors are required to disclose information to you
You are entitled to have all your questions answered about a franchise you are about to buy into. Data on profitability and success rates, franchisor expectations, what you can expect from them, and any additional questions you can think of. And in many instances, other franchisees are happy to talk with you, as well.
You will be signing a Franchise Agreement
This is the document from the franchisor that sets the terms for you to become a franchisee. It can be complex, and modifiable. You will want to have people on your side to guide you, such as a franchise consultant, franchise broker and a franchise attorney.
Be prepared to learn
The franchisor will expect you to go through training when it comes to running the daily operations of your business. You will learn about marketing, personnel management, the company’s branding, and everything else involved with your new business. Your success is the franchisor’s success!
Once you and your franchise consultant find a franchise opportunity that is right for you, and you are satisfied with all the answers to your questions, you should feel confident that you are on the best path to success in business ownership.
Franchise Matchmakers, based in Denver, Colorado, is a team of franchising professionals that are dedicated to helping people explore business ownership as a career path. Contact them at info@franchisematchmakers.com to find out more about franchising options that are perfect for you.
FRANCHISE FAQS: To help answer your franchise questions, we’ve put together a list of Frequently Asked Questions about buying a franchise business. Find our FRANCHISE VIDEO FAQS here.
