There are benefits, responsibilities, costs and risks in establishing a small business franchise opportunity. There are many important steps along the way to consider when researching a franchise business. If you complete those steps thoroughly, you can be confident on becoming a member of a growing, healthy franchise system.
Here are some major do’s: do you want to be in business full-time, part-time or with your family, thoroughly investigate the company, appraise the business to determine if it is a good fit for you, deal only with well established, well-financed and successful franchisers, and ask for assistance from a lawyer and an accountant.
When the word “franchise” comes up, the first thing that usually comes to mind is a franchise in the fast food business. Today the selection of a franchise can be from a computer in your home to a stable at a farm. Therefore, the fees cannot be compared as a ‘one size fits all’ as they have been for years.
If you have an idea of what you would like to do, see if there is a local franchise in your area for sale. Call and make an appointment with the current owners and arrange for an interview with them in person. Ask them about their personal experiences with the company and why they are leaving.
The world is growing and diversifying at a fast pace, so it is more important than ever that you choose to go into a business for yourself that truly fits you. When you feel comfortable doing what you like, your business and profits will show it. If you are willing to work, have done your research and your heart is in it, the rest will follow.
Many franchisors operate well-established companies with years of experience. Some franchisors started by operating their own business. Many provide training and other support services for you because if you are successful, the parent company is also successful.
If you are pressured in anyway during your conversations, take those tactics as a signal for caution. For example, if you are told, “because prices will go up tomorrow,” or “another buyer is very serious about this deal,’ remember a good seller doesn’t use high-pressure tactics. Time reveals the truth to everyone.
This very important investment will influence your life for many years to come. You should consider getting professional advice through a lawyer, an accountant or a business advisor to have a background in franchise corporations. They can help you with all documents and contracts and the money and time you spend on professional assistance and research could save you from a bad investment decision.
Author: Myles KruegerThis author has published 25 articles so far.