Selecting The Right Franchise For You
Updated: Jun 11, 2019
When you buy a franchise, you may be able to sell goods and services that have instant name recognition, and get training and support that can help you succeed. But purchasing a franchise is like any other investment: there’s no guarantee of success. Taking the time to look through these steps to help you find the right business.
1. Financials- Before you invest in a particular franchise system, think about how much money you have to invest. Ask yourself some questions. How much money can you invest without causing financial hardship to your family? Will you be getting money from a partner, family friend or financing? If you are planning on borrowing money what are the terms and conditions to pay it back? What’s your credit rating and credit score? Do you have additional income to live on while getting your business running?
2. Mindset - Are you a small business owner or franchise owner? Small business owners don't like to follow rules and like complete freedom. Franchise owners is someone who prefers the structure, guidelines and proven business system that comes with a franchise offering. Understanding the different mindsets can help determine if you are suited to run a franchise or own a startup.
3. Understand your goals & abilities - Do you have specials skills that will help with running the business, does it require special training or education? Are you interested in working in the field you are looking at - taking into consideration management of employees, working alone and business hours.
4. Research the franchise- Work to understand the visions of the franchise. Know the support and expectations of the franchises can help you decide if it's a good match for your capabilities. Ask the franchisor to paint a picture of a "day in the life" of a owner. Ask them to explain what the 1st year of ownership to the 5th year look like.
5. Review the FDD - It's highly recommended to review this with a legal adviser. Read the entire franchise disclosure document (FDD) thoroughly, paying close attention to the following sections: past or current litigation, payments and revenue model, turnover and resource strain.
SSB Franchise Consulting offers one-stop shopping when you are searching for a business to call your own. We help you save time by working with you to learn your likes and dislikes and style of doing business then matching you with prospective Franchisors at no cost to you. To read more on if we're a good fit go to https://www.ssbconsulting.us/faq