Buying a franchise may seem like a natural step if you are ready to start working for yourself, but don’t want to take the risk of starting a business from the ground up. Franchising allows you the benefit of an already well established business model and brand name under which you can run your own business. Before you begin, there are five things you should know before buying a franchise.
- Not All Franchises Are Created Equal – Before you run out and offer to buy into the first franchise opportunity you come across, sit down and do some real research into the viability of any business you are considering. Most franchisers will send you an information packet that includes business planning and financial information, and profiles of their top management team members. Compare this information side by side and find the one that you believe is going to be best suited to your financial and management skills. Where most franchises used to be well established long before opening their first franchised branch, today, many companies are rushing to open franchises before they have even proven that they can weather the storm to begin with. Make sure the one you choose has a good track record for overcoming challenges and adapting to changing markets.
- Planning Ahead Is Critical – Choosing a location for your franchise is one of the biggest challenges you will face. You need to be aware of who your competition is, the cost of real estate in your area, and the total area that you will be allowed to market in. This may affect which franchise you choose to go with in the end.
- References Will Aid Your Decision – Once you have narrowed your search to a few brands, do a little more research. Ask other franchisees about their experience, and whether or not they would choose to buy in again. They can give you an idea of the hidden costs they faced, the amount of investment, the support they receive from the parent company, and more.
- Staying Committed Is Key – Working for yourself may sound like a dream, but the reality is that running a business still requires a ton of work. You need to be committed to the location you are choosing, the franchise you are buying into, and the ongoing training and meetings that you will be expected to attend. Franchising is not for the faint of heart.
- Success Is Up To You – While buying into a well-known brand may seem easy, and guarantees you the infrastructure and product that consumers already love, it does not guarantee a good customer experience. If you are taking advantage of the technology and business model that is already in place, you have more time to spend focusing on making your customers happy with your location on a personal level. Even a great product will not keep customers from walking away if they know they can get it somewhere else after repeated negative experiences at a single location.
Ultimately, buying a franchise is a medium risk business strategy that will allow you the opportunity to work for yourself, but it does come with some very great responsibilities. Choosing the right franchise takes careful planning and consideration, and an ongoing commitment to success.
If you are interested in exploring business franchise opportunities, Sunbelt Atlanta can help you find the franchises that are best for you. We can assist with both locating and evaluating prospective franchises, and review your franchise agreements to help you get the best possible business for your money. Contact us today to learn more.