I really don’t. As crazy as it sounds (especially coming from a franchise advisor), I don’t care if you buy a franchise.
10 (Franchising) Things I Do Care About
Knowledge is power. It’s super-important that you know exactly what a franchise is. Do you? Really?
Even if you “know” what the greatest business model ever developed is, read this short article on the real definition of a franchise.
Are you the right type of person to own and operate a franchise business? Can you prove it? Have you followed the rules as they were laid out in past endeavors? Can you keep your ego in check, and commit to working someone else’s business system? One more question; you know that franchisees aren’t really entrepreneurs, right? Now, take this free franchise compatibility quiz.
Do you know what your top professional skills are? Have you written them down? Do you need some help figuring out which ones you can, (and should) leverage in a specific franchise opportunity? This is a crucial step in the franchise buying process that most people skip. Please don’t be one of, “those people.” Do this before you buy a franchise.
4. Making the right choice
The sheer number of different franchise concepts to choose from can quickly overwhelm you. Franchise web portals like this one are great places to look around. If you follow 1, 2, and 3 above, you should be able to narrow your franchise choices down to a few that you’ll want to focus on. Blindly searching for “franchise opportunities” on your favorite search engine will raise your aggravation level, and get you so confused…you may just give up. (Or, you’ll look for a franchise broker/consultant…maybe even an advisor-to help you figure things out.)
5. Great research
The most important part of your search for the right franchise is your research. (Of course, choosing a franchise business that is a good fit for your skill-sets is important too!)
If you’ve never done franchise research, you’ve never done franchise research. In other words, unless you’ve done the right kind of franchise research in the past, you have no idea what you’re doing. And, you’re damn right that I’m being harsh about this! Would you like to know why?
Most of the people who buy franchises never even call or visit the current franchisees of the opportunities they’re looking at. And, that’s only one of things they don’t do, that they need to do. They miss several franchise research steps. And later, when they go out of business, they can’t seem to figure out how it happened. Amazing.
Tip: You can learn the best techniques on researching profitable franchise opportunities here.
If you attempt to get a traditional small business loan these days, without a thorough franchise business plan, you’re going to have one hell of a time getting your loan approved. Here’s one that comes with a 60-day free trial.
7. Business entity
As you get closer to making your yes or no decision on a particular franchise, you’ll have to decide how you want your new small business set-up. Should you become an LLC or, would incorporating your franchise business be a smarter move? There’s an easy way to find out; talk to Nellie! (To talk with my friend, Nellie-click the “Get Started” link below.)
Choose a Business Structure with a FREE Business Consultation at CorpNet® – Get Started!
Get one. But, only hire a lawyer who’s used to reading-and even writing, FDD’s. Franchise Disclosure Documents and the contracts contained within them are not easy to read. Or decipher. In other words, make sure that you use a franchise attorney. They specialize in franchise law and franchise contract information.
As decision day approaches, you’re going to start feeling pressure. The pressure may come at you from a few different places.
If you end up qualifying for the franchise you’re interested in possibly purchasing, the franchise salesperson at franchise headquarters will ask you to sign the franchise agreement and send in the money for the up-front franchise fee. It’s going to happen, so prepare for it. This question is usually asked during your visit to franchise headquarters, or a few days after your visit. When The Question is asked, you have two choices, and that’s when you’re going to feel The Pressure.
There’s also self-imposed pressure. You want to be sure that you’re making the right choice in a franchise. Self-doubt may creep in. Sleepless nights will increase with regularity.
Spousal pressure is usually present, too. Hopefully, there’s a sizable amount of trust in your decision-making abilities. If there isn’t, the pressure to not freaking blow it can be huge. But, if you’ve followed along here, and have done everything I’ve suggested, your chances of success should increase.
At the end of the day, you may end up not buying a franchise. I am 100% comfortable with that, and you need to be, too.
You may not be able to handle the pressure that comes with investing the type of money that it may take to buy a franchise. You may decide that you’re not comfortable with the fact that you won’t be making any money for awhile as a new franchise owner. It’s easy to say that you’re okay with it when you’re first looking around at all the different franchises. But, reality may kick in at what turns out to be a most inopportune time. (Right when you’re about to sign a $30,000 check for the franchise fee!) You may decide to just get a new job. And that’s okay. Eventually you’ll get the bug again. Maybe things will be different then.
Just Do It Right
I don’t care if you buy a franchise or not. I only care that you do everything right in your search for a franchise. My job, (as a franchise advisor) is to make sure that you’re looking at the right types of franchises, (that match your skillsets) and that you’ve left no stone unturned in your franchise research. I can get you to the finish line. You have to cross it.
Finally, I haven’t been very truthful with you about one thing. Here goes;
I actually do care if you buy a franchise. I want you to. I want you to own what you do. I want you to control your own destiny, as opposed to having a boss do it for you.
But, I only want you to become a franchise owner if it’s the right decision for you.
Because franchise ownership can be a great thing.
How to Use a Franchise Opportunity Website
The 10 Commandments of Franchise Research
What You Need To Know About Franchise Consultants/Brokers