There are a lot of positive aspects to owning a franchise business, but it isn't for everyone. Here are a few considerations to make that should help you decide whether investing in a franchise is the right choice for you:
Be Your Own Boss, But…
One of the best things about buying a franchise is that you get to function as your own boss, but you also have the guidance and training to fall back on thanks to your franchisor, so you are never really alone when it comes to being a franchise owner. You don't have to worry about coming up with procedures and policies because those that have been proven to work through the business model will already be in place. Marketing designs, custom employee applications, and product lineups are all taken care of for you too, which makes being the boss a lot less stressful and likely more profitable.
You Know What You're Getting Into
By law, a company you consider purchasing a franchise from must provide you with a franchise disclosure document before you invest money in the business. This disclosure document will give you important insight into many aspects of the franchise that should help you determine whether the investment you consider making is a good one. You can expect to learn about the following information when receiving a franchise disclosure document:
- Basic Background Information – find out how long the company has been in business and their basic track-record since then.
- History of Litigation – learn whether anyone within the company has been convicted of a felony that involves violating franchise laws.
- Investment Costs – gain insight into initial and ongoing investment expenses that you'll be expected to pay.
- Renewal and Termination – investigate the terms of franchise renewal options and termination procedures.
Because you'll have access to so much pertinent information before deciding whether to make an investment in a franchise business for sale, you will know exactly what you're getting into by the time you become an official franchisee.
Take Advantage of Training
As a franchisee, you get to take advantage of training materials and methods that have been proven to work by other franchisees throughout the years. This should save you time and money when hiring, training, and firing employees and managers, and when dealing with the various "trouble making" customers, you'll undoubtedly deal with as time goes on.
A franchisor that offers quality training support will also help you find a lucrative location for your business, provide you with an operations manual that covers all aspects of running your business and furnish you with financial reports and guidance to help keep you on track as time goes on. The bottom line is that all the trial and error, testing, and analysis has already been done for you, allowing you to follow a model that is likely to succeed in the long run.
You Don't Have to Brand Yourself
You can expect the franchise you invest in to be already recognized by consumers, which means that you don't have to worry about branding your business in order to gain attention and build a customer base. More than likely, your franchisor will provide you with free advertising by means of general radio, television, and newspaper advertisements that promote all franchises throughout the nation or state you are operating in. This makes it easy to build a business without having to spend a bulk of your money on advertising if you have to spend any money at all.
With these considerations in mind, sit down and make lists of what you feel are all the positive and negatives aspects of owning a franchise. Then spend a couple of days comparing each list to one another before making your final decision.