Choosing a Franchise
There are plenty of franchise business opportunities available, but knowing which one will be the best for you can be a rather tough decision to make – yet it must be made. You have to start somewhere and this article will give you several things to consider to help you make that very important decision.
What Do You Enjoy Doing?
This is a rather broad question, but it is very important when you think about a franchise opportunity. Because of the costs involved, it can take a while to get a franchise off the ground. This means that you will end up doing the same work for years. As long as that is the case, you might as well choose something that you enjoy doing.
If you like working with cars, then you would want to get some kind of automotive franchise, such as one with Aamco Transmissions, Advantage Rent A Car, Express Oil Change, or a combination service like Male Care, which offers car washing, dry cleaning, and barber service, too.
If you prefer working with people, then there are many opportunities for that, too. If you enjoy doing all your work at home on a computer, there are also plenty of franchises that focus on that type of work. If you want to coach people, or educate people, then there are businesses ready to offer you a franchise business opportunity that will enable you to do that. You can also search for franchise opportunities by career interests.
What Is the Cost Involved?
All franchises have a cost to them, and in many cases the cost is very high. This cost is apart from any expenses that you will need to buy equipment or to secure building space to put your business in, too. You will also have to buy insurance, licenses, and possibly hire staff. Training may also cost, too. Overall, the franchise opportunity can range from a few hundred dollars to hundreds of thousands of dollars.
Since there are many companies that now offer similar but competing franchises, you will be able to choose one that will fit your budget. Or, you may have to find a different kind of franchisor that will fit your budget.
What Is the Company’s Track Record?
Before you make your selection of a company to go with, you will want to know everything you can about the stability and current trends of the company. This means you should look into the financial history, its current growth or decline, store closings, and existing lawsuits. Most of this information will be in the Franchise Disclosure Document (FDD) which you can get from the company.
What Is the Demand and Competition in Your Area?
With any future business, you always want to seriously consider both the demand and the competition in the area you want to start the business. Knowing that competition is fierce in an area may lead you to change your mind – or, at least it should. This could also lead you to consider another area if you are determined to stick with a particular franchise.
How Much Training and Support Will You Receive?
When you are selling another company’s brand and are yoked up with doing it their way, you need to know what kind of training is available. Is it simply a manual that is mailed to you, or can you actually get personalized training? Is there opportunity for advanced training? Also, once your business is established, you need to know how much help you can get when you need it. Knowing if there is a way to resolve any conflicts is another good thing to find out before you commit to a contract, too.
Evaluate Your Match of Ability to Manage the Business
Another very important issue to consider is how well you believe you can handle the daily type of management needed for the business. Some personalities do not do well under some situations. You will need to seriously consider if you are cut out for the type of decisions and level of involvement that is needed in that type of franchise business.
Take Your Future Goals into Account
One more important factor is what do you intend to do in the future with your business? Does the franchise opportunity give you the ability to fulfill your dreams? For instance, if you intend to open more chains with the same franchise company (master franchise) – will they let you? Or, if you intend to work only a 40-hour week – is it a realistic goal with that type of franchise?