Dec 18, 2017
Becoming a franchisee requires much research into opportunities. You probably have already educated yourself on what a franchise entails, businesses that would be a good fit for you, the cost of investment and franchise fees, and more. Before you make your decision, however, be sure you also know the following about buying a franchise to increase your chances of success.
Although brands may have provided you with plentiful resources and information, the best way to learn the truth about being a franchisee is by talking to other people who have bought the franchises you are considering. Questions to ask them include:
Asking for real-life experiences and advice from current franchise owners may help you avoid investing in the wrong franchise.
When you apply for a franchise, the business will consider factors such as your credit (including past bankruptcies), criminal background, and retail experience. Military service and previous management or ownership may also influence the acceptance of your application. Even your personality can play a role. Have a second choice in case of a rejection.
Remember that you are just as responsible for your success as the franchisor is. Attend all training programs, read all training materials, and utilize support services. You must be able to commit to the time and effort it takes to run the business in order to succeed.
While it is true that the pros outnumber the cons, as Entrepreneur shows, it is still wise to consider the disadvantages of franchises. You have much less control than if you created your own start-up and you are at the mercy of the franchisor’s successes and failures. These do not have to deter you from becoming a franchisee, however. Proper planning with the help of a CPA and attorney can reduce the risks you may face.
The best way to get information on these factors is to talk to multiple current and past franchisees. There will be no perfect franchise that no one has had issues with, so look for feedback that is positive overall and consistent across the board.
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