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Franchise
Franchises allow you to partner with a company that is duplicating a successful product. The success rate of a
franchise business in the first year is 2-3 times higher than if you started a new business on your own.
Why is this?
Franchises tend to work with a successful model. They establish the business parameters that have lead to success
and continue to modify them for future success. It is a play book to run a business.
Companies that offer franchises also tend to have requirements to purchase a business that are based off of initial
investment and personal wealth. It's important that franchises be successful as they will help build the brand and
attract more franchise owners.
There are many franchise opportunities to choose from including fast food restaurants like McDonald's and Wendy's,
auto repair shops, business brokers, smoothie shops, home furnishings, cleaning services, mail centers, hair salons,
coupon books and many more. The goal is to find a franchise the matches your interest and financial investment and
perform some self evaluation to see if you are cut out to run your own business.
Franchising Is It Right for You?
- Do You Understand How Franchising Works?
- Are You Ready for Self Employment?
- Are You Ready to Manage Employees?
- At Your Age, Can You Recoup Your Investment?
- Can You Come Up with the Financial Investment?
- Are You Ready to Follow the Franchise Rules?
These questions are important because unlike running your own business where you have the freedom to do anything you
want, with a franchise you may need to run everything by the book so that the integrity of the franchise is maintained.
As you begin to narrow down your list of franchise options, you will need to start focusing on more critical issues
that can impact both your short term and long term potential as a franchisee. You will need to do research on the
franchise and check for both good and bad news, consider emailing some current franchises to see how business is going,
and if possible visit a franchise location and see if you can see yourself running this business.
Franchise - Makers & Breakers
- Are there Exclusive Territory Rights
- Can a Contract be Ended? Are There Penalties?
- Can You Sell Your Franchise? Who Earns the Profit?
- Does the Franchisor Assist with Management / Employee Training?
- Do They Offer Assistance with PR and Advertising?
- Do They Assist with Merchandising?
- Do They Assist with Finding a Location?
These questions and others are important because you will start to learn how invested in your success are they. While not
every franchise is going to offer all of these services, most will be involved in helping to plan, train, layout your store
and even offer help in finding successful locations.
As you get closer to purchasing your franchise for sale, have a legal expert look over the contracts and the paperwork. You are making
a big commitment in purchasing a franchise and it makes sense that an expert makes sure that everything is on the up and up.
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