With hundreds of franchise opportunities available to investors today, how are you going to choose the right one for you? As national franchise brokers, we advise people every day on the process of choosing the right franchise; here are 7 steps every potential franchisee should take:
- Personal fit. Do you have a passion for being a business owner as well as for the product or service you are investigating? Sometimes you need to look past the money issues and consider the human issues as well.
- Talk to franchisees. Are existing franchisees welcoming and do they work together well? The best franchise systems are often those where franchisees engage in the system, sharing and supporting each other.
- Money fit. Cost is a critical component; think conservatively when it comes to cost and what you can afford to invest, keeping in mind that you will probably have some lean months during the start-up phase that you’ll need to cover.
- Management fit. How do you mesh with franchisor management? If you find them open and willing to discuss issues beyond what is in the disclosure document, that’s a good sign.
- Willing lenders. Check to see if banks are willing to lend to potential franchisees; their willingness to do so indicates confidence in the franchise.
- Churn rate. Franchises with a high turnover rate are to be approached with caution.
- Pulse of the market. Be wary of franchises in markets that are undergoing fundamental change.
Learn more about franchising opportunities at our free July 26 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
You may also register by calling 866-246-2884.