Today franchise opportunities are in plenty. Investing in franchise rightfully and choosing the right one is indeed a tough ask. In selecting the right franchise, you need to think in two different angles. One does the opportunity suits you and the other whether the franchisor is providing the committed value, not the exaggerated one. I have compiled some tips for you which might work as a roadmap on the selection process. Read on..
1. Check Yourself Before Investing In Franchise
Understanding your own skills is very important in the selection process. What are you good at? Are you good at sales? Finance ? Operations ? Are you skilled in some technical field? Would you like to be a manager and enjoy handling people in your business, You won’t be able to give time to the business person and hence will depend on hiring individuals who will run the show or you want to run the show of yourself, no employees. You must be clear from your side.
2. Be Clear What Exactly You Are Buying
Why after all you are buying a franchise? You buy franchise in order to buy their systems and procedures . Franchise is a licence in order to have access to a trial and tested system and procedures. If you are not getting that don’t invest . Better, you start your own independent business.
Never Buy Directly From Franchise Sales person
A company person will always provide the brighter side of the opportunity. Thats his/her job. When you find some franchises that interest you, talk to as many franchise owners as possible in those systems. Are they happy with their decision? Would they do it again? Talk to both happy and not so happy franchise owners. Discuss what you are hearing with the franchise company’s representative .
Meet the executive and support teams in person. They are your business partners if you partner with them.
A good franchise company is also checking you out. They want the right people for their franchise.
Before investing in franchise consult an independent franchise advisor who is not paid for franchise sales if possible.
4. Read through the Franchise Disclosure Document (FDD)
This is the required legal document that will be sent to you by the franchise company in the selection process. If you have any questions, ask them to the franchise company representative. Don’t invest in a company who does not provide FDD.
5. Check Your Own Financials
Any business needs time to make profit. You have to give certain time for the business to grow. You have to pay your existing family expenses till your business makes profit.You should have funds set aside for 6-12 months, while your business grows up.
And finally don’t forget to take your family in this journey. A supportive family will make your franchise journey a lot more easier as they will share your pains and joys along with you….