A franchise allows you to be your own boss, without some of the risks of starting a new business from scratch. The franchisor typically provides training, mentoring, marketing and brand recognition, while you pay a franchise fee and startup costs.
Here are some get-started tips that experienced franchisees swear by:
Choose a Franchise Aligned with Your Skills and Interests
If you’re passionate about caring for the elderly, consider a senior care franchise. If you’re a contractor working as an employee, you might consider buy a franchise in your field and go out on your own. Your industry experience, and/or dedication to your cause, can make the difficult (and long) early days, setting up and running your franchise, much easier.
Check the Brand and Industry Outlook
Find out how the parent company (franchisor) is doing. Are they well established, or a relatively new company? A big brand might offer more security because they won’t be out of business tomorrow, but franchise fees may be high. Relatively new franchises may appeal to you, if you want to get in on the ground floor, helping to shape the brand. Read expert commentary about the franchisor, and your chosen industry, in trade publications or financial journals. Check the company with BBB and relevant professional organizations.
Research the Franchisee Experience
Learn what it’s like running the franchise you’re considering. Talk with other franchisees (and read credible online reviews) to get inside information about the reality of operating that particular business. Learn what type of support or mentoring you’ll get from the home office or other owners. Find out if they’re responsive to franchisee questions/concerns. Also scour the franchisor’s website, social media and even their YouTube channel (if any). Look at what employees say about working for the franchising company, and/or at franchisee locations, on sites like Indeed or GlassDoor.
Have Sufficient Funds to Buy In and Run the Business
The first few years are often financially rough for a franchisee. You won’t see profits until you build your customer base and become accustomed to (and streamline) daily operations. Upfront costs vary widely, depending upon name recognition of the brand, and franchise type. Some franchises are equipment heavy, meaning you need to rent or buy commercial kitchen equipment, for example, and/or rent a location in your local area or assigned territory. In some cases, the company may provide (or sell/rent to you) proprietary software or special equipment necessary to do the job.
If you need funding to become a franchisee, we offer multiple options. Contact Affinity Capital Funding today.