Buying a Franchise? Follow This Best Practice Checklist
Opening a franchise can be a way to earn a good living by selling a product or service with the support of an established company. There are some risks involved, and opening a franchise is not for everyone. Here are some things you should think about before you decide to open your own franchise.
Do Your Due Diligence
- Have you thoroughly researched the franchise?
- Do you understand the product or service and the business model?
- Does the franchise have a strong track record of successful growth?
- Is it in a good financial position?
- Have you reviewed the contract in detail? Do you understand all of the terms and requirements? Have you had it reviewed by an attorney?
- Have you talked to current franchisees about their experiences with the company, how many hours they work, and how long it took them to become profitable?
- Have you researched requirements related to licenses, insurance, and other laws and regulations you will need to follow?
Understand the Market
- Is there consistent demand for the product or service offered?
- Is demand higher or lower depending on the season?
- Will demand decline if the economy is struggling?
- How does the franchise’s product or service compare to competitors’ in terms of quality and price?
- Is there potential for growth in the industry?
Know the Territory
- Is the franchise offering you an exclusive territory?
- Will you have direct competitors in your territory?
- Are other franchises in the area successful?
- Is there potential for growth in the territory?
The Role of the Franchisor
- What kind of support can you expect to receive from the franchisor?
- Will they help you choose a location, negotiate a lease, and design the layout?
- Will the franchisor provide ongoing training, financing, and advertising?
- Will you be subject to the franchisor’s contracts for goods and services?
- Can you afford the startup and ongoing costs associated with running a franchise?
- Will you need to take out a loan? What are the terms?
Is the Franchise Right for You?
- Are you comfortable with following rules and policies set by a corporate headquarters?
- Is the specific franchise you are considering a good fit for your personality?
- Do you have the skills and abilities required?
A Great Franchise Opportunity
If you are thinking about opening a franchise and are looking for a good opportunity, consider opening a Between Rounds bagel shop. This successful franchise currently has four locations across Connecticut, and we are looking to expand. You can sell delicious fresh bagels that Connecticut customers have grown to love. To learn more, contact us today.