by Rey Beltran | www.executivechronicles.com
At first glance, it looks easy. You already have a brand, therefore, you already have a built-in following. Set-up will be provided already, just find the right location for it, etc. But getting into a franchise is much more than that. Read on:
Ask Yourself Why You Want a Franchise
When you get into a franchise, you will be basically under the rules and regulations of the franchisor. If you’re the type who does things on your own, you might have to think more than twice to get a franchise. Franchisors will ask for your commitment in terms of resources and time. What is your motivation in considering getting into a franchise?
Research on the Franchisor
Know the franchise. Check its track record. Are the other franchisees happy and satisfied? Are the franchisees doing well financially? Is the franchisor financially sound? Does the franchisor treat their franchisees fair? You might be surprised at the things you will find out. Talk to other franchisees to find out more about their experiences. You will definitely learn so much from them.
Read the Agreement
As with all contracts, even the fine lines should be read. True, the hell is in the details but reading it all will be to your advantage. Consult a lawyer and have him explain the points you don’t understand. Pay particular attention to the length of term, start and end of the agreement, renewal and end of contract provisions. Don’t rush or be rushed into signing the agreement.
Know the Ins and Outs of the Business
You have to understand everything about the business. You have to know its market, its prices, the industry regulations, etc. You have to find out what the market likes about you and about your competitors. Immerse yourself in the business rather than just act like an investor. That way, you will have first-hand knowledge rather than hearsay.
At the end of the day, you need to have the money for it. Franchisors usually ask a hefty capital from you. Ask yourself if you can come up with the needed capital for it. If you’re comfortable with the money you’ll be investing, good for you. But if you’re not, maybe you need to find another franchisor? Also, the franchisor would definitely check how much you’re worth when you apply. So make sure you’re financially sound.
Knowing what you’re getting into will help you decide wisely. So consider these points before becoming a franchisee!