It’s a common scenario: you want to run your own company but don’t want to risk everything by establishing one from scratch, which may end up being an expensive error.
Instead, you’re considering a franchise, where you’ll be operating a tried-and-true company model and profiting almost immediately. But how will I know whose is correct if you’ve determined this is the best route for you?
A few tips to give you advice are present here.
Which industry is it?
First and foremost, what industry do you find appealing?
Many franchisors do not need prior industry expertise, and all franchisees should provide some kind of training for the position. Nonetheless, consider which sectors best fit your talents, aptitudes, and prior employment experience.
Obviously, you’ll like to know all you can about each franchise on your shortlist. And that study should include not just what the job involves but also how working in that field will affect your chosen lifestyle.
How well will you handle a primarily indoors franchise if you enjoy being outdoors in the fresh air all year?
Please remember that whatever route you choose, will have a long-term impact on your professional life.
Furthermore, any franchisor would want to know that you are excited about and devoted to the franchise brand. So, bide your time with this crucial phase of the decision-making procedure, as a franchisor would be able to see right through any doubts you may have.
Taking your initial steps
It’s then an issue of choosing the ideal franchise in that industry after you’ve settled on your subject of interest.
Expect due diligence to be a two-way affair when you make your first contact. Hopefully, you’ll have many questions regarding your potential future as a franchisee. However, the franchisor will want to learn all there is to know about you to determine if you possess all of the traits they are looking for.
You would be well-prepared for this meeting if your past study was comprehensive. You’ll have also given yourself the greatest opportunity of satisfying your franchisor’s requirements.
Paying a visit to existing franchisees
Contacting current franchisees will be one of the most significant aspects of your investigation.
It will also be more beneficial to call the franchisor after hearing the franchisor’s explanation of the franchise offer and comparing and contrasting it.
Not only would such a visit give you a far greater sense of the company and daily working atmosphere, but it will also enable you to hear firsthand from a franchisee what the franchise offer is like in reality.
It’s only natural that each franchisee you speak with would explain things a little differently – which is precisely what you want to hear. However, if you hear anything that causes you true worry, you’ll be in a far better position to confront any misleading claims made regarding the franchise model.
Potential red flags
You’ll be prepared for a more in-depth meeting with the franchisor armed with your earlier research and potential networking links you’ve built with existing franchisees.
So, instead of settling for ambiguous statements, make sure you know precisely what to anticipate from the start of your induction.
If your franchisor refuses to communicate with current franchisees or tries to limit your visit options, you should be worried. Similarly, if you’re being pressured to fork up large quantities of money before you even join up, it’s an indication you should seek elsewhere.
In a similar spirit, you’d expect a tried-and-true brand to be profitable and operating effectively. You should be concerned if your study reveals a history of early resale and/or territory closures.
You may confidently go on with the sign-up step after you’ve been recognized as a franchisee candidate and provided what you’ve uncovered offers your selected franchise offer a clean bill of health.
After that, you’ll be prepared to take your initial steps as a proud franchise owner representing a well-known brand.