Franchise Buying Tips
So you want to own a franchise? Buying into a successful business opportunity can be a great investment but as with any venture it involves risks. Before you jump the gun and pour your savings into a franchise, take some time to review a few helpful tips that will provide the information you need to make the best decision possible.
- Research – Just because someone you know is doing well with a franchise doesn’t mean it is a “can’t miss” opportunity. You need to research the franchise thoroughly to know its history. Franchises often have a system and training program and by researching this information you will have a better idea of it is a good fit for you. Your research will also provide you with starting costs, estimated time to see a profit and opportunities for wholesale distribution, expansion and other factors that could affect your decision to invest.
- Talk to Franchisees – Just about every franchise will brand it as being like a “big family”. That’s nice to hear but really it’s a business and everyone is in it to make money. The owners of franchises are the people you want to speak to. Arrange for times when you can observe their franchise in action and when you can speak to them directly and ask hard questions that will help you make an informed decision. Have a list of questions ready so you don’t get sidetracked and take notes.
- What is the Marketing Strategy – Many franchises have required marketing initiatives to build the business. However, others may leave the marketing up to you and before you get into an area you don’t have experience with, know how much of the marketing you have to do on your own. Having a parent company help out with marketing can be good but you may your own ideas and you need to know if you will be able to implement your ideas and if so will you have to cover the costs.
Getting in on a franchise can be a rewarding experience. However, you have to be genuinely interested in the business and have a passion for the industry in order to be successful. If you are only in it for the money then you probably won’t make it. Take your time in making a decision so you are sure it is the right one.