Buying a franchise can be an exciting idea. It ensures you make a decent earning every month. Especially if you are associated with a renowned brand, your financial woes are catered to. However, it is not easy to buy a franchise.
Here are 12 simple things that you should do before you start a franchise business.
1. Give yourself a personality test
Not everyone can do well when they open a franchise. You will have to check if you have an outspoken personality. Only those with a flair for talking and lead seem to do well in franchising.
2. Understand the field
You will have to study everything about the franchising industry before you enter the fray. Find out material on the internet, and that would give you a better idea.
3. Find out your strengths
Next, you must analyze your strengths. Are you good at cold calling? Or maybe you can handle accounts? Whatever you can do the best will decide which franchise you should pick.
4. How much money do you have
When you want to buy a franchise, you have to see the money involved. If the franchise setting up costs are more than your capacity, look for one that fits your budget.
5. Stay away from franchise consultants
There are franchise consultants who would say that they can guide you better. But you should avoid them as they would take up a hefty consultancy fee.
6. Don’t believe what others say
People would say that franchises fail only 5% of the time. That is not true, as the franchise failure rate is the same as that of an ethical business. You have to ensure all things are taken care of to reduce the chances of failing.
7. Find out the truth
Whichever franchise brand you choose to be with, check out its actual reality. Maybe they are faking to be profitable. Find out how many of their stores are doing good business.
8. Talk to other franchisees
Make sure you talk to other franchisees that are in the field. You should speak to at least 10 to know the actual reality of the franchisor.
9. Read their terms and conditions
Every franchisor has terms and conditions document that you must go through. There would be clauses that could trap you in the long run.
10. Hire a lawyer
Do not start your franchise journey on your own. Hire a proper lawyer so he is present while signing papers and other legal work.
11. See how it feels to work in a store
You should have an idea of how it feels to work in a store. A day or two of experience will clarify if you are made to do this job.
12. Do a cost/benefit analysis
Your money is not something to be wasted. Do a cost-benefit analysis so that you know if the decision to start franchising is worth it or not.
Your decision to open a franchise should not be made in an instant. We at Chaiops give you tremendous support in setting up your franchise business. Our profit margins are incredibly high so you won’t be worried about your earnings.