Are you looking for a brighter future? Joining a franchise is one of the best ways to free yourself from the drain of a 9-5 and take back control. Not only are you able to lean on others for experience, but you will be working with a proven business model. However, not all franchises are created equally, so it's important to do your research. Here are 5 points to reflect on.
1 - Initial costs and return on investment
Becoming a part of a franchise can very quickly advance your dreams. Much of the hard work has already been done for you in terms of building a business from the ground up. Because of this, franchise models require some form of investment to assign you a slice of the pie.
Like any investment though, it's important that the franchise owners are transparent about all the fees involved - and able to explain to you exactly what you will be receiving in return. Remember that while some franchise options may be cheaper, that doesn't necessarily reflect the quality of said opportunity.
Many franchise agreements are convoluted and hard to decipher. Initial fees and monthly management fees should be clearly explained to you, and you should be wary of any hidden costs like royalty fees.
2 - Training and Support
The people who have built this business should have years of experience to lend to you. This knowledge and expertise allow you to get off the ground quickly. Rather than spending time recovering from common business mistakes - you can bypass those failures and focus your efforts on your customers.
However, this knowledge is only useful if it's shared. Training and support from day one are absolutely essential in order for your franchise to thrive. Find out early on about the training arrangements, and what kind of support will be available to you.
3 - Do your research
Speak to other franchise owners. Reach out to other franchise owners using the internet and discuss their experiences with them. Better yet, ask your Franchisor to put you in touch. If they refuse to do so or cherry-pick specific examples, then you should see this as a red flag. Everyone is different - and a bad experience isn't always reflective of the franchisor themselves - but you should learn as much as you can prior to moving forward.
4 - Location, Location, Location
Think hard about your demographic. Big-name franchises may seem like an easy win, but consider how they will fit in your area. Brick and mortar sites often incur heavy overheads, and you may be joining an already crowded market. Sometimes more niche approaches can bear fruit.
5 - Planning For Success
You have power in numbers when it comes to being a franchisee. With a well-connected network of franchisees, you can discuss common problems, and see what's working well for other people. Setting up a franchise requires capital, and unless you run your business alongside your day job, you will also need to consider your overheads. A good franchise network should allow you to ask others for their tips on how to make it work.
