Are you considering investing in a franchise? If so, you’re not alone.
Franchising is a popular choice for aspiring entrepreneurs who want to start their own business with the support and resources of a larger organization. However, with so many franchise opportunities available, it can be overwhelming to choose the right one.
Some franchisees fail and many could have avoided failure if they had conducted thorough research at the front end of the franchise selection process.
To help you make an informed decision, here are 4 do’s and don’ts of franchise research:
DO:
Research the franchise company’s history and reputation
Look for a company with a proven track record of success and a good reputation in the industry. Not every franchise company is the same. The services that franchisors provide their franchisees vary widely based on the company’s philosophy, maturity and fees.
Determine if the franchise is a good fit for you
Consider your skills, interests, and budget to determine if the franchise opportunity aligns with what you want to achieve. Many people don’t realize that their skills are transferable, especially when it comes to franchise ownership.
Understand the franchise agreement and what it entails
Make sure you fully understand your obligations and rights as a franchisee. The franchise agreement is a very important document. It is the written contract between the franchisor and franchisee. The agreement tells each party what it is supposed to do and what they cannot do.
Seek out franchisees who are currently operating the business
Talk to existing franchisees to get an idea of what it’s really like to run the franchise and whether it will be a good fit for you is very important. Existing franchisees who are currently operating the business day to day will give you great insight into your future business.
If these things seem overwhelming right now, don’t worry— our consultants at Bailey Brown The Franchise Agency will be there to walk you through every step of the franchising process, from going through the franchise agreement with you to helping you find the perfect franchise for your personality and budget with our customized Franchise Fit Assessment.
DON’T:
Rush into a decision
Don’t let your excitement cloud your judgment and lead you to make a rushed decision. Take the time to fully understand the franchise opportunity and all that it entails before making a commitment. Remember that starting a franchise is a significant financial and personal investment, so it is crucial to do your due diligence.
Assume all franchise opportunities are the same
Don’t make the mistake of assuming that all franchise opportunities are the same or that one franchise system is the perfect fit for everyone. Each franchise is unique and has its own set of strengths, weaknesses, and business model. It is critical to carefully emulate the specific franchise opportunity and how it aligns with your goals and skills.
Forget to consider the ongoing support and resources provided by the franchisor
Make sure to thoroughly research the support system offered by the franchisor and ask them questions about what type of support you can expect to receive. Furthermore, don’t forget to consider the level of support provided as it can greatly impact your success as a franchisee.
Neglect to seek advice and consulting services from outside sources
Finally, if you don’t have any experience with franchising, hiring a franchise consultant can make your franchising journey significantly easier and quicker. Our consultants have years of experience in the franchising industry, so we can help you avoid common mistakes new franchisees make and ensure you’re making an informed decision.
By following these 4 do’s and don’ts, you can feel confident in your decision to invest in a franchise. With due diligence and the help of our consultants at Bailey Brown The Franchise Agency, you can find the perfect opportunity to turn your entrepreneurial dreams into a reality.
Which one of these do’s and don’ts did you find the most helpful?