Are you thinking about purchasing a franchise business?
Many people are drawn to franchises because they allow you to be a business owner with much of the legwork already done.
The business plan, what the store will sell, the logo and the advertising are all taken care of for you.
Franchises are often viewed as the best of both worlds because you run a business and start making a salary immediately, whereas if you opened your own new business, it could take months (if not years) to see results.
Businesses that can be purchased as a franchise include Allstate, Arby’s, Chick Fil-A, Econo Lodge, Subway, U-Haul and hundreds of others.
Study Up Before Purchasing
If you’re thinking about owning a franchise, it’s important to study up beforehand to make sure that it’s the right business for you.
The best way to start out is by reading books on franchising. There’s no better way to understand the scope of the industry than by learning from those who have been there before.
If you’re not sure where to start, check out the top 8 books to read for franchising.
The top three books on the list include The Educated Franchisee by Rick Bisio, Become a Franchise Owner by Joel Libava and Franchising for Dummies by Michael Seid and Dave Thomas.
Is Franchising Right for You?
In addition to reading books on franchising, it’s important to learn all you can about the industry to make sure that it’s what you want to do.
Just because the business plan and product are taken care of doesn’t mean the work is going to be easy. You can expect long hours, little vacation time (especially when starting out) and other stressful situations that will arise.
To be sure franchising is for you, ask yourself the following questions:
- Are you willing to run the business someone else’s way? – This is perhaps the biggest question you will need to ask yourself. Yes, you are in charge of the franchise, but the systems are already in place and more than likely, the owner is not going to be willing to change them just for you. Make sure you’re willing to work under someone else and adapt to their way of running a business, not your own.
- Can you afford the start-up costs? – Franchise start-up costs can range from a couple thousand dollars to hundreds of thousands of dollars. Before choosing a company, make sure you can afford the cost it will take to get your store up and running. If you can’t afford it, consider picking up a part-time job, working overtime or selling unused items to bring in some extra money.
- Is running a franchise something you will enjoy? – The best way to test the waters when it comes to franchising is to talk to other franchise owners. Ask if you can meet them for coffee and learn what they like, what they don’t like and what the challenges are which come with the job. If you see yourself being happy by running a franchise, then by all means, go for it.
Running a franchise requires discipline, a support system and the motivation to see your franchise succeed.
Once you’ve done your research on franchising and figured out if it’s right for you, it’s time to move forward with running your own franchise business.
About the Author: Sarah Brooks is a freelance writer living in Charlotte, NC. She writes on a variety of topics including small businesses, social media and personal finance.