Buying A FranchiseFranAlign will take you through the process and understanding your investment, abilities and goals.
Buying a franchise is a major financial investment and a serious personal commitment. The most significant benefit to franchising is the reduced level of risk. One of the primary motivators for owning a franchise is it allows you to go into business FOR yourself, but not BY yourself. That’s because you are buying into a proven business model leveraging an established brand. Instead of having to reinvent the wheel, a franchisee gets a lot support with different functions of the business, offering a better chance for success.
With your franchise fee you get a format or system developed and proven by the company (franchisor), the right to use the franchisor’s brand from a specified duration business support from the company. Support comes in a variety of forms – For example, some franchisors provide an operating manual to run the business, support the Franchisee with locating a site, train Franchisee and employees, provide sales and marketing tools, business systems and so on.
Taking you through the process and understanding your investment, abilities and goals will be one step forward in deciding whether a franchise is right for you. You need to consider the following:
- How much money do you have to invest?
- How much money can you afford to lose?
- Are you purchasing the franchise alone or with partners?
- Do you need financing? Where will you get it? What’s your credit rating and credit score?
- Do you have savings or additional income to live on until your franchise opens and, you hope, becomes profitable?
- Does the franchise require technical experience or special training or education — for example, auto repair, home and office decorating or tax preparation?
- What special skills can you bring to this business?
- Do you have experience as a business owner or manager?
- Most importantly – WHY are you buying a franchise?
- Do you need a specific minimum annual income?
- Do you want to work in a particular field?
- Are you interested in retail sales or performing a service?
- How many hours can you work? How many are you willing to work?
- Do you intend to operate the business yourself or hire a manager?
- Will franchise ownership be your main source of income or a supplement to your current income?
- Are you in this for the long term?
- Would you like to own several outlets?
- Are you willing to let the franchisor be your boss?