As a franchise owner, you can enjoy many benefits, including not having to start a business from the ground up. If you are considering becoming a franchisee, what do you have to do before taking the plunge? Here are the helpful steps to take first.
1. Do the Research
Begin by researching the relevant industry and the specific business you want to be a part of. This step is a great way to help you decide if it’s a great opportunity for you, as well as introducing you to people in the industry. They can support you and answer questions, such as where a good location is and what to do to prepare for opening day.
2. How Much Capital is Needed?
Determine the costs necessary before opening the doors. The initial start-up expenses include real estate, business license, and equipment for the office, kitchen, or another part of the franchise.
Also, figure out how much money you will need to make it until your operation starts to make a profit. Remember that you may have to advertise the new business before you start to make money; it’s best to have extra funds in place in case it takes a while to turn a profit.
3. Monthly Fees
Once you buy a franchise business and are in operation, what are the monthly fees? If you must pay a franchise fee or royalty, then factor in that expense. Also, marketing fees and purchases of products or services over time need to be factored in.
4. Talk to Other Franchisees
Find out what other franchisees think, from the good and the bad to the unexpected when they first bought in. See what you can learn from them to make a smoother transition for yourself.
Another important question to ask when you’ve got them on the phone is whether they’d do it all over again if they could. Lastly, ask if headquarters has been helpful to them, just in case you need to reach out to HQ one day.
5. Think about Hiring Experts
If you’re not known as a numbers kind of person, then you might want to hire a financial expert to help you. It could be a bookkeeper who is close to the family and your trust, for example.
The benefit of hiring specialists like this is that you can then focus on daily operations. Oversee the franchise to help ensure its success.
6. What is Training Like?
Before sealing the deal, ask the franchiser if they offer training, and how extensively. While they likely provide initial training, do they answer questions beyond that or provide follow-up support?
Make sure you know what’s available training-wise and that you’re comfortable with what’s available to you. Perhaps headquarters provides seminars and extra learning opportunities you and staff can benefit from in the future.
Becoming a Franchisee
Taking the step to own a franchise is exciting! Just make sure you pick one that is a good fit for your talents and that you research beforehand to make the transition a smoother one than it might otherwise be.
Do your homework when it comes to finances and ask questions to HQ. Wishing you all the best with the career opportunity.