Choosing the right franchise can be a daunting process. It is a major and consequential decision. Much of the success and enjoyment of owning a franchise depends on the franchisor. A franchisor is the company that gives you license to open a store with their name and products, but also expects certain rules and regulations to be followed. Before you decide what franchise to invest in, there are some things to consider.
What Are Your Goals?
This may seem like a basic place to start, but many people get excited and do not take time to stop and think about WHY they want to be a franchisee. Are you in this for the money, do you want to be your own boss, are you seeking to spend more time at home, or are you an entrepreneur at heart? You also need to decide if you want to be an owner or an owner/operator. An owner/operator is much more involved in the day-to-day operation of the business.
Are You Right for the Franchise?
Shopping for a franchise is a little different than shopping for other items. While it is essential that the franchise is right for you, you also have to be right for the franchise. You have to consider if your starting budget is appropriate. Some franchisors are looking for people with expertise in their specific market whereas others want people with entrepreneurial drive and basic business knowledge.
What to Look for in a Franchisor
Support. A good franchisor will help you find the best opportunities for real estate. They will help you negotiate the best possible business transactions for equipment and any other essentials. They will help you plan and market your opening. They will also have excellent training methods and advice to give you the best possible chance at success.
Protection. You should get the geographical space required to own a market. If a franchisor allows too many properties to cluster, they are not protecting you. Also, they should not be directly engaging with your customers if there is a chance they could steal business from you.
Standards. A great franchisor will only accept franchisees that are a good fit. Accepting anyone with money can tarnish the brand and reputation of a business if certain systematic processes are not in place and enforced.
Entering into a business arrangement such as a franchise agreement is very complex and you should protect yourself. Costly mistakes are made in business every day. If you are considering buying into a franchise, enlist an experienced attorney such as Elias Dsouza of Dsouza Legal Group to assist with your protection.