Welcome potential franchise owners!
Owning a franchise can be an exciting opportunity to be your own boss while leveraging an established brand.
However, it’s a big commitment and there are some key things to consider before taking the plunge.
As someone looking into franchise ownership, you likely have a million questions running through your head. You’ve come to the right place for answers!
Here are our top pieces of advice for future franchise owners:
Potential Franchise Owners Need to Research, Research, Research
We can’t stress enough how important it is to thoroughly research any franchise you’re interested in.
Make sure to speak with current and former franchisees to get the inside scoop on the following areas, and more:
- Corporate support
Request the Franchise Disclosure Document to review all legal and financial details.
Hire an attorney to review the franchise agreement and help you understand your rights and obligations as a franchisee.
Don’t just rely on the franchisor’s promotional materials—do your due diligence upfront.
Understand How Much You Need to Invest
Opening a franchise requires significant capital.
Determine the total investment needed, including items such as:
- The initial franchise fee
- Marketing budgets
- Working capital
Realistically assess how much liquid capital you have or can get from loans or investors.
Undercapitalization is a common pitfall for new franchisees, so secure adequate financing from the start.
Evaluate Your Skills and Interests
Franchising is a business, so consider your personal attributes honestly.
Are you comfortable being in charge with the franchise system providing support and training? Do you have marketing, management, leadership, and problem-solving skills?
What gets you excited: sales, service, food, retail? Align your interests and abilities with the right franchise opportunity.
Suggested Reading: Is Experience Necessary When Purchasing a Franchise?
Choose the Right Location
Location can make or break any business, especially franchised units.
In the territories available, research location factors such as:
- Traffic patterns
Drive around potential sites at different times and days. Enlist professionals to help find and negotiate the best location you can afford.
Don’t settle out of convenience or haste.
Potential Franchise Owners Should Build Relationships
One big perk of franchising is being part of a network.
Attend conferences and company events to connect with support staff and fellow franchisees.
Join messaging boards and committees. Get to know your franchisor and field consultants.
When challenges arise, these relationships will prove invaluable to get guidance and learn best practices.
Go In With Eyes Wide Open
Owning a franchise can provide many advantages, but it’s still starting a business.
Expect long hours, hard work, and responsibility.
Franchisors provide training and support, but you need dedication, passion, business acumen, and grit.
Understand the risks and rewards going in, roll with the punches, and be prepared to learn and adapt.
With realistic expectations, the hard work will pay off.
Connect With a Professional Franchise Consultant
The best piece of advice we can give to potential franchise owners is to connect with a professional franchise consultant, such as Franchise Matchmakers.
Using a consultant will help you sort through the thousands of franchise opportunities, and take you step-by-step through the entire process.
Franchise Matchmakers is a team of franchising professionals dedicated to helping potential franchise owners explore business ownership as a career path. Contact us at email@example.com to find out more about franchising options that may suit you.