3 Steps In Finding the Right Franchise
People are always looking for opportunities to make their lives better. Franchising opportunities offer a chance at financial freedom and success. However, the path of finding the right franchise that fits your passion and profile can be a difficult one. It requires determination, focus, objectivity and giving attention to detail. Finding the right franchise – here are 3 tips that all franchise candidates should use before evaluating, selecting franchise opportunities and finding the right franchise in their situation.
When you invest in a franchise, you are putting your money into something for the long term. On the average, franchise agreements span over a term of 10 years. So you need to go with something that you are passionate about. Since you will be the one responsible for the day to day running of the business; you do not want something that makes it difficult to get out of bed in the morning.
Enthusiasm for the franchise that you choose is crucial because you cannot just quit or look for another job. The American Association of Franchise & Dealers and The International Franchise Association offer reviews, guides and directories to help refine your search. Alternatively, the Franchise Business Review provides franchise reports based on surveys from franchisees. In addition, you can employ the services of consultants to find you locate a franchised company that suits your needs. However, be aware that franchisers also pay for their services and they might be biased.
Bore into the Details
Once you discover the franchises that appeal to you, find out more about them. Ensure that you get a Uniform Franchise Offering Circular from the franchises. This circular contains information like how to run the business, any bankruptcy or litigation charges, fee requirements, investment costs, rules, restrictions and the contractual agreement.
With the UFOC in hand you can start to compare start-up costs, potential revenues and the ongoing expenses of the franchises that you are considering. In addition, you can get to understand the style and amount of initial training and support on offer and compile a list of franchisees that you can ask questions.
Ask the Right Questions
Do not just ask franchisees random questions. The questions that you ask must be from information that you have reviewed from franchise companies. Email, make phone calls or pay personal visits. Firstly, introduce yourself and let them know you are considering being part of a franchise system just like them. Secondly, clarify that you have done some research and have a few questions bogging you in order to make that final decision. Do not forget to mention how you got their contact information as well.
When finding the right franchise, you should always ask yourself why some franchisees are doing better than others. Find out if they are utilizing all the advantages afforded them under the system. Most franchisees would be happy to share their experiences with you.
Here are some important questions to ask them:
- Are you satisfied with the support and training you have received?
- What do you know now that you wish you knew before you started?
- What other franchises were up for consideration? Why did you choose this one?
- Are your sale projections what you anticipated? Did you fall short? How long did it take you to reach your goals?
- Have you been entangled in any issues or disputes? How were they resolved?
- Did you encounter any difficulties in starting up? In what areas?
Make out time to also visit franchise locations. Do not limit yourself to talking to only franchisees. Speak to franchisors and their competitors as well. The more information you have available, the better your chances of making an informed decision.
By: Alam Qureshi is Broker of Record with ProClient Brokers Inc., Brokerage. To know more about Franchising, Selling your Existing Business or Buying an Established Business for Sale in Ontario, call us 416 364 5550 or CONTACT US to get in touch.