When you’re dealing with something new, what’s going to save you from failure is knowing which rocks to look under. By having all your questions answered early on, you would have a pretty good idea of what you’re getting into. The same concept applies when you’re thinking about buying a franchise and setting up a business. You have to be paranoid and inquisitive – these traits might just save you a lot of money.
Franchising is becoming the child of a parent company. A would-be entrepreneur purchases a franchise from an established company and sets up business with the same brand and business model as the parent company. This way, he wouldn’t have to start a business from scratch. As appealing as it may seem, there are risks; you should be careful in choosing which franchises to buy into.
How are new franchisees helped?
Learning more about how the franchisor prepares his franchisees to succeed is very important. You can’t just go and start a business without proper knowledge of things you need to do and accomplish. Reputable franchisors offer extensive training to help you understand the company, the brand that you’re upholding, and the support that you’re going to get.
How strong is the after-purchase support?
After the purchase and after you’ve set up your franchisee business, you’re going to need the franchisor’s support. This is key, especially if you’re required to pay ongoing royalty fees to the company, as these fees should cover the support you’re going to get from the parent company. Determine what type of support they offer, and whether these seem strong or flimsy to you.
How good is the marketing program?
One type of support that you’re going to need after buying into a franchising opportunity is about marketing. You need to make sure the company already has a marketing program developed and waiting to be implemented. This can save you a lot of time and effort in developing your primary customer base.
How much money will I make?
There are two you need to pose this question to. You can deal directly with the company that sold you the franchising opportunity, or you can ask other franchisees under the same parent company. Usually, the latter is a veritable gold mine of information regarding the ups and downs of owning a franchise from the parent company that you two share.
If you still feel a little wary about your options, it’s a good idea to work with reputable franchise matchers who can lead the way to franchise heaven. These matchers can help find the perfect franchising opportunity for you. For more information, you can visit allbusiness.com/buying-a-franchise/15617249-1.html.
Key Questions to Ask Before Purchasing a Franchise