Look rather towards the word ‘investing’ rather than ‘buying’ when it comes to franchising. The objective when investing in a franchise system is to see a return on the initial investment over time. The likely ROI will depend on the effort expended in developing and growing the business during the franchise agreement term. Remember that investments can go down as well as up!
Investing in a franchise system revolves around a franchise agreement which is a legally binding document signed by both parties so, before making the initial investment, be sure that you’ve made the right decision.
First step should be to evaluate yourself and jot down your skill-sets along with a list of attributes that you could bring to a franchised business.
No point looking towards a courier franchise for example if you hate driving or don’t have a licence!
Likewise there’s little point looking at a grass cutting opportunity if you suffer from hay-fever or working in the retail sector if you don’t like ‘Joe Public’!
Ultimately running a business is all about making profit so make sure that the numbers ‘stack up’ and fit your financial requirements.
Once you have filtered through the numerous opportunities available, research every operator within your chosen sector and pick through each one with a fine-tooth comb to be assured that the opportunity is right for you and offers the applicable profit potential.
Once you have made a decision, get to speak to as many franchisees already trading within the franchise of your choice to re-affirm that what you have read and been told is accurate.
Be prepared to work hard. Although investing in a franchise system will give you a significantly better chance of success than possibly trading on your own, you’ll still need to work hard promoting and marketing your business.
Don’t be deceived into thinking that franchising is utopia in disguise!