Imagine buying a franchise, investing your hard-earned money into and then finding out, it isn’t a good franchise for you. That happens all the time- and for silly reasons.
Most people think of franchises as a completely perfected system so they don’t ask enough of the right questions in their research. You can guess where that leads them- (hint) someplace not good. But YOU are not most people and this information is to help you prove that. When done correctly, starting a franchise can create incredible success. That’s what we want for you.
5 Things You Should Know If You’re Asking “Should I buy a franchise?”
Let’s learn five important things to help you put the odds in your favor and get the franchise business of your dreams.
1. Know the franchise and franchisors business models
Business models are an incredible under evaluted part of the process and it is one of the most important things to understand. The simple way to explain it is how do the businesses make money. What are the primary focuses and are those focuses aligned with your interests?
You have to look at the location or franchisee business model and that of the franchise system. BOTH are important. Some franchises are designed to make money off of you and others are designed to make money with you. Make sure you are picking one that is fixated on helping their franchise owners achieve the highest levels of revenue they can get them to. That’s a clear indication of a good path.
2. Franchises have flaws like any other business
People tend to think franchises are a perfect system but we know this is not the case. It’s important to look for a clear picture, not a perfect one. You’re a professional adult who’s gained enough professional and personal growth that you can handle more than the average bear or you wouldn’t even be considering a franchise. You don’t need perfect. You just want the whole story. That’s the beauty of franchising. You can have that with the Franchise Disclosure Document. The interesting advantage that you get through this process is learning the weak spots in the system up front so you can better prepare and plan a path around them. That’s how successful people become more successful. They take calculated, smart investment risks.
Any business venture will have its flaws. While others beginning their journey stop at the first problem, rather than exploring how they can make the problem work for them, be someone who finds the opportunity in the problem presented. Successful people begin at the problem, it offers the most reward.
3. Why are the franchise fees so high?
The initial cost and fees of purchasing a franchise can appear to be high if you don’t understand what it’s made of.
Your initial payment covers a ton of ground. If you compared the cost of doing everything the franchise provides yourself, you would be blown away by the expense. It’s not cheap to build from scratch and it takes so much more time. The franchise provides systems, budgets, plans, support, training, technology, website development, packaging, etc. (the full suite depends on each franchises offering).
The cost of accessing all those systems, processes, and tools is much less than expensive than building these things on your own because the cost is shared with all the other franchise owners and the corporate franchise system. They have paid the price to get you these services at a greatly reduced rate.
4. Invite your circle of influence to support you
Building a support system of family and friends is one of the most essential parts of launching a franchise well. It’s also a lot more fun when your team is behind you, supporting your new venture. BUT, most people are scared of business ownership so you have to be smart in getting their ready to accept your idea and new plan. By preparing a good explanation of the purchase, the system, how your background will help- you will equip them with the information they need to understand to support you. It really helps to have them bought in and there are definitely things you can do to transfer your vision to them.
5. Understand a franchise is a long term partnership – make sure it’s the right partner
Recognize that a franchise is more than just a “Business in a Box,” it’s a partnership, and just as with any partnership, you have to be able to work with people and be able to work through whatever challenges come up in creating your successful venture.
The leadership team and the franchise award process matter. They give you a glimpse into how your relationship will be managed once you are a franchise owner.
Our advice would be to give yourself the proper time needed to conduct your due diligence, so you can have a good partnership. Many people skim through the education process.
Instead, take the time to get the answers you need. At FBA, we can help you continue to find the proper tools to conduct the proper research, Our brokers focus on helping you understand the options, and partnership with the franchise so you can see if it is a partnership worth taking.
Why FBA?
Are you’re asking “should I buy a franchise?” you’ve come to the right place. At FBA, we’ll be alongside you for your entire franchise journey. With our knowledge and experience, we can help provide you with the proper tools and guidance to navigate the franchise system. Gain the confidence to take the next step and let us find you a GOOD franchise.
Watch the full episode to learn more from Sabrina Wall on this topic. You’ll get your answer on should I buy a franchise.
Are you ready to start your franchise journey and find GOOD franchises? Contact us today to get started.