When you think of the word “franchise” what comes to mind? Do you envision a business in a box, something to set and forget, or maybe perhaps a hobby that you can run at your leisure? Here are the 7 essential questions you’ll need to ask before investing in any franchise.
Is the brand recognizable?
Before you think about signing your name to any contract, consider their name. Is the brand recognizable? Put yourself in your prospective customer’s shoes, would you buy the product/service based on the brand name? Even when the brand is well-known you must take into account how it will be received in your territory.
How successful are their franchisees?
If you really want to know how healthy a franchise is go straight to the source, other franchisees. Does the franchise you are thinking of investing in make this information available to prospective investors? Do they allow you to contact their franchisees so you can ask them how they are doing in the current climate? These are things that will help you determine if the opportunity is even worth pursing.
Are they offering help with marketing?
The power of the consumer has never been greater. With so many choices flooding the market you will want to stay ahead of the pack. A solid marketing strategy will help you gain the edge in competitive markets and even help you capture some new ones. Is your prospective franchise offering comprehensive plans to advertise your business?
What do you get for your investment?
The truth is that investing in a franchise costs a considerable amount of money. It’s reasonable to want to know what you are getting for your money. Does your franchise itemize the opportunity for future franchisees? You want to make sure you know exactly what you are signing up for when you purchase any franchise.
What kind of training do they Offer?
Who doesn’t need a little support? Mentoring, coaching, training, whatever you call it learning the ropes is essential for success. What kind of training does your future franchise offer? Is there an option to upgrade your skill set as technology advances?
How can I be sure this is a good fit?
Not all matches are made in heaven. Investing in a franchise is a major decision, one that will link you to your franchisor for an indefinite amount of time. You must make sure that you are compatible with the opportunity. Personality conflicts, even minor ones, can cause major rifts in your profitability. Make sure you have a good rapport before you decide to invest.
What about fees?
The world of business is a knock-down drag out fight at times. It takes a person with guts to make it especially when dealing with a franchise. You not only have to answer to yourself but you also have to make your franchise fee payments. What are the terms of your fees? It is important to know all the costs upfront so they can all be accounted for and worked into your budget.