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5 Things to Do Before You Start a Franchise
Starting a franchise can be a tremendous investment. With the right opportunity, you can see success that you never even dreamed of. But the key is to make sure that you’re devoting your time, money, and energy to a franchisor that’s worthwhile.
How do you determine that? By doing these 5 things:
1. Finding out everything you can about your potential franchisor.
What are they like to work for? What kind of reputation do they have in the industry? Are they respected? Are they considered leaders in their field? Will they do whatever it takes to succeed?
You can learn a lot about a potential franchisor from talking to people around the industry. Talk to other franchisees and get their opinion. Then, talk to other notable people outside the company. That will give you a true measure of the kind of company that you’re dealing with.
2. Study the industry itself.
Do you find it interesting? Is it something that you can see yourself working hard on? Any new business comes with a lot of hard work. But, that work becomes much more bearable if you are genuinely passionate about the subject matter. If you’re fascinated by the industry, you’ll be far more likely to put in all of those extra hours.
3. Determine exactly how much it’s going to cost you.
With a franchise, start-up costs aren’t your only expenses. Many franchisors will make you pay monthly or annual fees to secure your franchise agreement. Some franchisors will even require you to pay ad-hoc costs.
Before you sign anything, make sure that you know exactly what kind of financial situation that you’re getting yourself into.
4. Find out exactly what kind of support you’re going to get in the beginning.
Most franchisors will give help new franchisees get the ball rolling. They may help you recruit employees, train a new staff, install all of your IT equipment for you, and even put you in touch with some valuable PR connections.
After all, they’re the veterans of the industry; they have “been there, done that” countless times before. Having a franchisor’s help can enable you to turn a profit much sooner than if you had to do all of that work on your own.
5. Read the fine print.
Remember, a franchise agreement is a legally binding document. You can’t simply throw it away if things get tough. Before you sign anything, you need to make sure that you’re comfortable with every provision. If not, the time to negotiate is now.
Lesley D’Arcy – As a Franchise Recruitment Manager at Mortgage Choice, Lesley D’Arcy is responsible for recruiting franchisees to greenfield (new) opportunities. Her career in franchise recruitment spans over 15 years where she has worked with many major franchise brands. Lesley has a wealth of experience in recruitment of
franchisees and builds on this experience by unearthing and developing the latest and most innovative ways to help franchisors build their networks. This experience has given her the skills to become an expert in the field of franchise recruitment, excelling in lead generation, screening, qualifying and selling to prospective franchisees.
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