We all know that starting a business can be daunting. And if you think that you want to lessen the difficulties of a start-up, then consider choosing a franchise business instead. A franchise business allows you to efficiently market the goods and services of a company. The right to use the name at a specified time as stipulated in the contract how many years you are allowed to operate and use the business name of your chosen franchise business.
Therefore, should you decide on choosing a franchise business, be sure to read the following tips:
1. Market Demand.
You won’t just put your hard-earned money into any business without totally checking if a specific business’s products and services have a vast market demand. If you plan to franchise an overseas brand, remember that what could be well-received abroad may not be the same here. Therefore, never start any business without doing your research.
2. Reputation
I have seen so many businesses that offer franchises. Sadly, not all are credible enough to invest. First and foremost, try them yourself if the offer appeals to you. Not because a company offers a seemingly good package is the right business. Again, do some research and check the industry, determine the amount of support the franchisor provides to existing franchisees, and know-how the consumers receive the products and services.
3. Resources
Start small, dream big. Like most aspiring entrepreneurs, they want to hit it big in a short period. But that is the wrong mindset. It is best to work around your existing resources instead of acquiring a loan. A considerable part of the investment in the operation of the business is paid to the franchisor, licensing, equipment, and training. Check what inclusion is in the franchise fee. Determine how long it will take for your ROI (Return Of Investment).
4. Uniqueness and Competition
Choosing a franchise business that you know has built its name in the market is best. However, you must also consider the location where you intend to place it. If it is already a famous brand, there are likely others ahead of you in that area or other businesses offering the same products and services. You have an edge; however, people will undoubtedly flock to your store if your chosen franchise business provides a unique experience.
5. Support
It is wise to talk to existing franchisees regarding their experience with the business about how much support the franchisor provides. A franchisee’s success relies not solely on its sale but, more importantly, on the kind of support the franchisor can provide to run the business successfully. Hence, this includes training employees and offering help should problems arise.
6. Limitations and Restrictions
Being in a franchise means following everything the franchisor asks, as written in the contract. As a potential franchisee, you should know the guidelines, policies, and standards to follow—the logo, color, store design, product offerings, prices, and operating hours.
Questions to ask a Franchisor
You can check online to know which franchise business can interest you. There is quite a long list. It would help to suspend each franchise that seems promising for you and ask the following questions to existing franchisees to help you decide which one to choose.
- What made you choose this franchise business?
- How long has the business been since it started?
- How much support does the franchisor offer?
- How has the sale been for the past three months?
- Are your supplies enough to serve customers all the time?
- How difficult is it to train employees?
- How long were you able to achieve ROI?
You may think that finally, you are your boss. However, since this is a franchise business, the franchisor has the upper hand. You cannot make any changes without the franchisor knowing it. If you think you are uncomfortable with such a setup, then having a franchise business may not be for you.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
