How to Own a Franchise: Your Pre-Investment Checklist
In today’s post, the FranNet team discusses 5 things you need to ask yourself before you invest in a franchise:
How does this franchise fit into my life (and lifestyle)? Before you start crunching numbers and adding up your ROI, think broadly about what this company is going to add to your life. Will this franchise’s schedule and obligations enhance or upset the balance you’ve achieved between the personal and professional? Do you believe in their overall philosophy? Do you think this work will be fulfilling? Ultimately, franchises are as different as the people who own them. Fortunately, there are so many options in Canada that there’s really something for everyone. One of the best ways to find out whether a specific franchise fits into your life is to consult with a franchise adviser.
Does this franchise system stir my passion? Enthusiasm is a key component for success in any walk of life, franchising included. Finding a franchise system that gels with your existing hobbies, pastimes, and interests can set your business up to do well. If you’re passionate about health and fitness, consider franchises in this field. Some people feel best caring for others; senior care might be for you. Tech-crazy Millennials might be happiest owning franchises related to computer and internet services. Finding something you love isn’t all that matters, but it’s certainly important.
Does this franchise suit my strengths and personality? Choosing a franchise based on an existing skill set can be a great choice. Having said that, many franchises design their training programs to put business success in reach of anybody with the right attitude. Don’t feel like you need to be an expert to open a franchise in a certain industry.
Your franchise adviser can give you more details about which brands will work for your experience level. Beyond skills and experience, you’ll want to choose franchises that suit your personality. If you’re a night owl, opening a breakfast franchise isn’t ideal. Similarly, introverts might not feel comfortable working in sales positions that involve a great deal of customer interaction. This is much more important; it’s easier to learn a new skill than it is to learn to like something you hate!
Am I compatible with this franchise family? The best franchise systems are built on the backs of healthy relationships between franchisees and franchisors. Knowing this, you want to avoid dysfunctional franchise families, and ensure that you’re compatible with the people who share your brand name. Most franchises prioritize meet-and-greets well before any papers are signed, and we encourage you to take advantage of these opportunities to get a feel for the people sharing the system. It’s vital that you feel comfortable and feel confident in your ability to work with them, as you’ll be relying on their help a lot early on.
Have I talked with existing franchisees? Learn what you can from franchise advisers and franchisor information packets, but don’t forget to speak directly with active franchisees. Nobody will be able to give you a better idea of how your life will change after the franchise agreement is signed. Franchise conferences and trade shows are both excellent opportunities to speak with franchisees. Be sure to explore their perspectives before you sign on the dotted line.
You can find more franchise research tips and tricks at http://www.frannet.ca!