7 Steps to Successfully Choosing a Franchise

Featured Listings
UK Growth Coach
Angela’s Swim School
The Alley
The Reading Doctor

So you have decided that you want to start a franchise, but you don’t know what type of franchise that you want to have. It can be hard to decide which one to go with when there are so many to choose from, and the process can be quite overwhelming if you allow it to be. But if you take the time and sit down, you will be able to work out what type of franchise is the best for you and once you do that everything else will start to fall into place.

Here are seven steps that you can use to help you figure out what franchise you should choose.

1. Think about yourself

The first and foremost thing that you want to do in your quest to find the perfect franchise is to figure out some things about yourself. What kind of things are you skilled at? What kind of experiences have you had? What are your interests?

Also you want to think about the last job that you had what you liked about it and what you didn’t like about it. You also want to think about the strengths and weaknesses you had in your last job. That will help you to decide what you should do.

Then think about your financial situation. How much do you want to invest in your business, and how much can you invest?

Do you want to stay where you are, or would you be willing to pack up and relocate?

What are your expectations after your business is established, and what are the hours that you are going to be willing to work? Are you someone who would rather work alone, or do you think that you would be comfortable overseeing the work of others and managing them?

What are your feelings on the sales process and selling?

All of these questions are designed to help you figure out what you have to offer and what you are expecting from the business. This will help you to create a model and strategy for the research you are going to do.

2. Do your homework, but keep an open mind

You want to remember to be open to all of your options when you are considering starting a franchise. It’s very easy to think about a product that you like a lot, and then think that it’s the best option that you will find. But then you do the research on the product and you find that there are a lot of problems. For example, you might find that your desired territory is restricted, or you might have to give up the weekend trips you love, or you don’t have the amount of money that you need.

Another thing you shouldn’t do is stop with just a couple of concepts. If you do this, you may find yourself missing out on something that is exactly what you are looking for.

It’s a great idea to keep your mind open, because that will allow you to possibly find something that will be just what you are looking for instead of settling for something simply because it’s convenient.

3. Make contact

Once you have found some franchises that have caught your eye, the next thing you’ll want to do is to make contact with the franchisors and ask them for information about the concepts of their franchises. Chances are that you will be contacted by someone in the development department of the company and they will figure out how interested you are and if the territory that you are wanting is available. Take a good look at the web site of the franchisor and review all of the brochures and videos they send out to you.

Take detailed notes on the impressions that you have got for each of the franchisors. How up to date and professional are the materials they sent? Are they nice to you, and do they seem knowledgeable about the company? Do they address your questions and concerns in a satisfactory way?

How you are treated right now could be a good indication of what you can expect once you become a franchisee.

4. Study their Prospectus & Franchise Agreement

No matter what size the franchise is, they will all have one thing in common – a Franchise Prospectus. You will want to study this Franchise Prospectus very thoroughly and it should tell you the marketing and training programs of the franchisor, the costs, royalties and fees that you’ll be required to pay, and the history of the franchisor.

There may also be a claim of the earnings potential, which will also give you an idea of how much you could make.

Another thing that the Franchise Agreement should explain clearly is the responsibilities of both the franchisor and the franchisee, which is you. It’s important to review and understand this as a big portion of your research.

5. Get feedback from Franchisees

One of the best ways to find out what a franchise is like is to talk to the current franchisees. You’ll want to find out what their likes and dislikes are, if they like the support that they receive from corporate management, what it’s like for them on a day to day basis, and they might even let you know how much they make.

Of course you’ll want to talk to franchisees all over the country, because what happens in the south may not happen in the north, and the same goes for the east and the west. If you live in the south but only get opinions from the franchisees in the north, you may receive an unrealistic picture of what it will be like for you. Talking to franchisees from all over the country will paint a very real picture of what it is like with that particular franchise.

6. Time to narrow down the field

It’s coming down to the wire, and now you have a difficult decision to make. It’s time to narrow down and weed out what franchises are maybes and what franchises are definite no’s. Everything that you have done so far should help you make an educated decision on what franchise could be right for you.

Look over the details from your research. Remember what you read on the Franchise Prospectus, what the current franchisees said, how you were treated when you contacted the franchisors personally, and narrow it down to a couple of franchises.

Once you know the ones that you want to consider, you’ll want to go to a Discovery Day which is a meeting that you have with the franchisor or franchisors that you have chosen. You will get introduced to people in the home office, and you might even visit a local franchise. This lets you ask more questions and perhaps even get some hands on experience.

Your Discovery Day will help you to know more about the franchise and they can be exciting and interesting, but make no mistake – they’re going to be looking at you at the same time you are looking at them.

7. Making your choice

Now that you have all the information that you need, you can make an informed and confident decision. You may feel worried, nervous, and excited all at the same time, but rest assured that if you have followed all of the above steps you know everything that you need to know in order to pick a franchise that is right for you.

In conclusion

Choosing a franchise takes a lot of time and a lot of work, but considering how much money and effort you will be putting into the franchise you have chosen, you want to be sure that you make the right choice for you.

Not only will you find out about your prospective franchisors, but chances are, you are going to find out a lot about yourself as well. Enjoy the journey – it’s long but in the end it’s going to lead you down the right path, and you’ll feel good in knowing that you have done everything that you can to make a well informed decision.

Complete Your Request