Are you thinking that a franchise might be the right way to approach small business ownership? As you explore the franchise opportunities you think might be right for you — or as you explore franchising in general — there are some things you should consider before you buy a franchise.
Your ability to run a successful franchise largely depends on your personality. At a very basic level, you need to be able to operate under a finite set of rules. You also will need to take a look at the demands of running your specific franchise to determine if the franchise is a good fit for you. You might even talk to family or friends about franchising or specific franchise opportunities to get their advice on how they think you would do within the confines of the franchise.
Franchise track record
If you’ve found a franchise you think might be right for you, look at the franchise’s track record. How well are the franchise’s current franchisees performing? Do new franchises generally open to success? The franchise’s past performance can give you insight as to how your individual franchise might do for you.
Satisfaction of existing franchisees
A solid franchise business will be willing to put you in contact with existing franchisees. Talking to existing franchisees will allow you to answer questions, gauge the ease of working with the franchise and get a feel for the overall franchise experience. Some franchises might even be willing to let you spend time at an existing franchise so you can get a true feel for the operation.
Before you sign on the dotted line, you need to know what your signing up for. Examine the franchise agreement to know what’s expected on your part and what you can expect from the franchise. Know what your financial commitments will be to the franchise over time, and make sure that the franchise rules and regulations are something you will feel comfortable operating within as you launch your new business.
Level of support
Before you sign on to a franchise, be sure that the franchise will give you the level of support you need to operate your business with success. Assess your own strengths, weaknesses and knowledge base. Does the ongoing support provided by the franchise give you the information and support you need to be able to establish, run and grow your business?
Purchasing a franchise is a major decision. From the time you decide that franchising is the way to go to determining which franchise is right for you and signing the franchise agreement, you need to be sure that you are making the best decision for you. Before you choose to buy a franchise, be sure you’re taking all of the right things into consideration.