When you want to open a franchise, you should look for one that would be a good fit for you as a person and an entrepreneur. Franchising offers a codified business plan and resources designed for success. Your job as a franchisee would be to understand where you fit into that structure. To aid you in making the decision, here are five questions to answer that may paint a clearer picture.
What is the brand?
When you buy into a franchise, you’re buying into a larger system and brand. Branding is critical and can make or break your business. What you must consider is how recognizable that brand is and what does it say. What does the brand stand for as a benefit to its targeted consumers?
What is the model?
Every business model is different in subtle or not so subtle ways. One question that typically dominates a discussion is volume over quality. The common belief is that franchises put quantity over quality, but that’s not necessarily the case. Investigate your franchise opportunity to fully understand their business model and how it purports to work for you.
How much does it cost?
A franchisee must invest their money, or raise capital, to open a franchise in the beginning; that’s obvious. However, most franchisors require added profit sharing or licensing fees of their franchisees. These costs could be well worth it or prohibitive.
Will it work for where I am?
Geography makes a difference. How well do you understand the people who will be your customers? Is the product or service you wish to sell going to meet a need for your area? Typically, a franchise does exhaustive research before considering a site, but nothing beats understanding your home’s pulse and local culture.
Will it work for me?
The last piece of the pie is you. You need to know that you fit into the overarching demands of the franchise and can play along. You need to understand yourself as well as anything else to move forward with this investment.
As you investigate, explore every aspect of the franchise opportunity with reasonable skepticism. You do not have to buy in emotionally unless you are convinced financially. But if everything works for you, then you can look forward to a rewarding partnership.