If you’re planning about becoming the owner of
a franchise, the first thing you need do is realize that franchising is a two
way road, it is not only that you choose a franchise it is also a franchise
that accepts you as a franchisor.
A franchise is, technically speaking, an
authorization that allows you to reproduce the -generally- successful business
of somebody else, but it is not as simple as signing some papers (franchise
agreement) and pay some upfront money (franchise fee) it is also the franchise
owners that evaluate if you are a good fit for the franchise business.
A good franchise candidate is someone that
meets certain financial threshold: minimum cash capital, minimum personal net
worth, additionally, even most franchises promises to teach you all you need to
manage the business, in reality a lot of franchises require you to have some
knowledge about the industry and some level of managerial experience. It is not
rare to find some franchises digging even deeper like checking your credit
score to evaluate how good are you paying your debts.
On the other side, you have to find out if you
would make a good candidate for a franchise-type business. When you buy a
franchise you’re buying someone else’s business system and
you will have to be a good rules follower because most franchises have very
strict systems to follow, like a precise recipe (manual of operations) to be
followed and you are not going to be allowed to paint out of the lines. You
will have to follow pre-made marketing templates, and sales strategies, and use
a specific accounting software, and so on. In a franchise system, you are
required to follow the franchisors rules, all of them.
A lot of people make the mistake of looking into franchising because they hear that buying a franchise is buying an ongoing business, it is not. You will reproduce somebody’s else business system but you will have to start up from the ground in most aspects of starting a biz, like finding a location, buying equipment, filing for permits and licenses, etc. Owning A Franchise Involves Really Hard Work, like every other business.
Buying a franchise can be very rewarding. Very. Specially because it is less risky that starting on your own from ground zero. Even if you have to do some business establishment tasks, most of the important issues are already covered, like processes, brand, marketing, financial model, etc.
It comes down to choosing the right franchise that makes a match with your interests, preferences, capital and type of business; using professionals that help you find the right match for you can save you time and money. Contact us.