Purchasing a franchise can be a lot of work. It starts with identifying the kind of franchise you would like to own and operate.
Perhaps you want to own a sub sandwich store or a Chem-Dry Franchise, whatever strikes your fancy as an entrepreneur you will need to do a considerable amount of research before you commit to your chosen enterprise.
Becoming a franchisee is often the route that first-time entrepreneurs take because they have a strong system of support behind them as they get their business off the ground.
But it’s important to glean as much information about your preferred franchise ahead of time. That way you know what to expect as it pertains to your financial investment in the opportunity and operational capacity as an owner.
While a franchisor usually offers backing in various forms, not all of them provide the same level of support and involvement in your enterprise. That’s why the initial exploratory steps are essential to a successful future with any company you choose.
So what kind of research should research should you be conducting before you buy in? Here are the essentials that require your attention:
Your research starts by finding out how much you are going to need to spend to get in on this opportunity. For starters, what is the cost of buying in upfront? That initial investment will vary depending on what franchise you are planning to join.
In addition to the upfront investment, you’ll likely have royalty fees to contribute on a regular basis as well as other operating costs such as rent, insurance, accounting, legal, employees, and so forth.
Parent Company Involvement
One of the reasons entrepreneurs choose a franchise as a way to open their own business is because there are support systems in place to help the business blossom.
Many companies will offer marketing and advertising assistance, technical support and training, along with a recognizable name in the marketplace that customers can trust. Find out how much involvement the parent company is ready to provide you as a franchisee to get your business up and running.
Some brands are more hands-on than others and you need to gauge your level of comfort with the franchisor’s willingness to assist your new enterprise.
If you’re satisfied with what you’ve been able to find out so far, hold on a minute. You may not be getting the full story. The franchisor is all too happy to present a rosy picture of what it’s like to work for them.
But seeking out the advice and opinions of franchisees that are working for the company or once did but no longer do can go a long way towards providing a clearer representation of what the franchise offers to its franchisees.
They can give you all of the pros and cons of working for that company and if you are hearing more of the latter than the former, it may not be the company for you.
Better that you know now and not after you’ve made a substantial commitment of time and money.