Do you find yourself thinking that you are just not where you want to be in life? Maybe your daily work routine is too monotonous and you need to do something else. Or have you come to the conclusion that you really want to make an investment in your life, to discover and flourish your own potential?
You’ve likely spent many years working for someone else, and you have gained a lot of business knowledge. After all the years of working 8 to 5, you want to become your own boss. You want to start a business.
Maybe you’ve decided the field you want to work in and you have the investment money you need to get your business going. You are confident the in the direction that you are going, and you have decided to purchase a franchise. With a franchise system, you’ll get brand recognition and the training you need. You’ll receive proven and tested business, sales and marketing plans, and you’ll have support from the franchisor’s home-office team. You understand the advantages of becoming a franchisee and all of the resources available to you.
The final step is choosing the right franchisor. You should know what to look for when choosing a franchisor. Here is some key information to seek when considering the purchase of a franchise:
Supply vs. Demand — Inquire about the market for the franchisor’s services or products, and find out how many people really need the service. Research competitors in your market. Ask the franchisor why and how their franchise stands above its competitors.
Track Record — Learn about the company — how long it has been operating, and how it survived economic recessions. This information may be indicative of business strategies and the market demand under any given circumstances.
Technology — What types of technology do the franchisees use and how does the technology compare to that of competitors? What are key differentiators in services or products for marketing and customer service? The quality of the technology may also indicate financial stability of the franchisor.
Education — Does the franchisor provide thorough training and continuous support and assistance if needed?
Franchisee Selection — Is the franchisor selective as to who they choose to become part of their company? Requiring certain criteria or qualifications is beneficial and necessary. If you are trying to protect your investment, the franchisor should be trying to do the same.
Franchisees — Franchisors want franchisees who show the most promise. Most franchisors will look at the big picture when selecting new franchisees so everyone in the company benefits. Be flattered that a franchisor wants to get to know you and asks for information about you. Likewise, the franchisor should provide you with contact information for franchisees who can help answer questions you may have.
Corporate Office — How does the franchisor’s corporate office assist you when you have a problem or need? Whether it’s a marketing matter or something to do with accounting, will they help you? What is the turnaround time for your issue to be addressed and resolved? These could be questions you ask of current franchisees.
Royalties and Legalities — This area is one you must inquire about with the franchisor. Any fees or legalities should be clear and concise, well-documented, and upfront before you sign on the dotted line. You should not be pressured or misled. You should be given time to review all information and take precautionary steps before closing the deal.
Integrity — A franchisor’s integrity will come into play in all areas of your business. Make sure your franchisor has proven integrity by all means of business. Check with current franchisees to find out about a franchisor’s integrity.