How to Spot and find Awesome Franchise Opportunities
All franchises are not created equal. There are existing franchises that aren’t profitable. There are promising franchises that have a strong track record of success in their given niche. Here is how to spot and find awesome franchising opportunities.
What’s your budget?
First, before you begin evaluating any franchise opportunities, you need to plan a budget. Doing this earlier on in the process prevents you from investing too much time into researching a franchise that you ultimately won’t be able to afford. Understanding your budget helps you narrow in exclusively on opportunities that will fit your needs. Make sure that you look at your net worth statements, so that you can have a clear view of what you can make happen. Startup fees for a franchise can be anywhere between $10,000 or $1 million.
Franchise Company History
Company history is another important consideration when evaluating existing franchises. You want to look for a stable franchise that is highly competitive because you will be investing a significant amount of time and resources into the partnership. You will need to evaluate what’s called the Franchise Disclosure Document to get an understanding of the franchise’s standing. You will not get access to the FDD until you have been thoroughly vetted, but when it becomes available to you, you need to review it carefully. You need to research the officers at the franchise and learn as much as you can about management.
Desired role in the franchise business
You need to consider what your role will be in your franchise. If you don’t want to be too involved in the day-to-day operations, then you will need to look at opportunities better suited for absentee owners. You can look for management opportunities if that’s more of your speed. If you want to have a hands-on experience and be involved in daily operations, you can look for owner-operator type of opportunities. Consider you management style and your level of comfort in leading a team.
Transparency in the Franchise Business
You want to business with a company that is transparent. You have access to basic sales and earning information for your prospective franchise opportunities. All franchisees have the right to provide you with earnings projections and performance history. You want the figures substantiated by actual data, so that you are fully informed as you make a decision.
What kind of transparency and support do the franchises offer?
You want to feel comfortable with the level of support you will receive. You are looking to develop a lasting relationship with a franchisor, so you want to make sure that the company provides you with as much training as you need. You want access to a network of franchise owners, so that you can learn from their experiences and grow. You want to be reassured that you will have ample support at your fingertips.
Once you have decided on buying a franchise or have narrowed down to a few options, you can discuss your plans with a franchise consultant. These professionals match you to awesome franchise opportunities perfect for your lifestyle and business needs.