Investing in a franchise business is a thrilling and life-altering leap of faith. The business is flourishing with potential ranging from tiny, home-based models to large-scale operations. How can you find the best franchise opportunity when new ones come out almost every day?how to start a franchise business?
The franchise consultant has arrived.
These experts advise prospective franchisees through the discovery and investing process. As the founder of a company that educates franchise consultants, I have witnessed their roles as coaches, counsellors, mentors, and educators. Similar to real estate agents, franchise consultants do not charge potential investors for their services. On the other hand, they are paid by the franchisor when a contract is signed.
If you’re unsure whether to hire one of these pros, examine the following ten factors.
How Franchise Consultants Can Be of Service
Determine if franchising is suitable for you:
Priorities come first. Are you truly qualified to own a franchise? Can you adhere to a tested method? Purchasing a franchise is a major life decision, therefore you must make the best decision possible. You may like the concept of a food franchise, but are you willing to manage 20 staff and undertake a costly buildout? A franchise consultant will pose difficult questions and point out the good, the bad, and the ugly to a prospective franchisee.
Know what to anticipate:
The process of investing in a franchise can be lengthy. You must comprehend the daily operations. As a franchisee, how will you spend your time? Will you have to go out and look for work, or will it find you? Are you a people-person who is not frightened of selling, or do you prefer to work with your hands? A franchise consultant will describe the daily grind and assist you in visualising yourself in that capacity.
Determine reputable brands:
Good franchise consultants spend a significant amount of time at industry events networking with franchisors and learning their concepts. They are affiliated with brands with a track record of success. This means they will assist you in obtaining accurate facts. There are a few questions that should be asked of every franchisor; however, depending on the brand, there may be other concerns to raise.
Find opportunities you hadn’t previously considered:
You may be familiar with franchised donut shops and burger places, but did you know that you can also run a franchised drywall repair business, mobile billboard company, or medical lab? Anything you can imagine is likely franchised, so think beyond the box. The best aspect of franchising is the ability to completely reinvent oneself. You may have never considered owning an art studio or senior care business after years as an accountant, but you can! Most brands may be managed without specific industry experience.
Limit your options:
Even if you have your heart set on a fitness franchise, there are plenty of alternatives. Would you prefer manage a huge, conventional gym or a specialised studio? If the latter is the case, you will still need to select your brand and concept. Choose between yoga, boxing, and rowing. Perhaps a mobile personal training brand is optimal.
Understand the advantages and disadvantages of each brand and model:
Franchises are not created equal. Perhaps you have restricted your options to three painting brands. Should you choose the company that has been franchising for 20 years and has hundreds of sites, or the company that has only recently begun offering franchise opportunities? Perhaps the third alternative falls somewhere in the middle.
Determine hidden costs:
Some fees and expenses associated with a franchise may not be apparent at first look. Will you have to pay extra for local advertising, or is it part of the cost? What does the franchise fee pay for? Are you liable for travel expenditures during training?
Evaluate the level of risk:
Every franchise investment involves risk, but how much are you ready to assume? Do you prefer a ground-floor opportunity or a well-established brand?
Meet with industry experts:
Franchise consultants can expose you to reputable lenders and attorneys that specialise in franchises. Talking to other franchisees is a crucial component of the franchise discovery process. A franchise consultant will assist you in asking the appropriate questions and evaluating the responses.
Maintain the momentum:
Everybody is busy. Franchise consultants will give you reminders and messages to keep you on track and ensure you don’t miss any essential process steps.
What You Must Perform Yourself
It is crucial to be diligent throughout the franchise discovery process. It is essential to pose questions and conduct research. Your franchise consultant can guide you, but ultimately it is your responsibility to exert effort and conduct the necessary research. Investing in a franchise may be a life-altering decision, so you want to get it right. Take the time to make the calls, analyse the documents, and fully comprehend the franchise potential.
Working with a franchise consultant resembles working with a real estate agent. At the end of the day, you will be the one to pay for, take care of, live in, and make a life in your new home. A realtor can show you homes of various styles, explain the pros and cons of various neighbourhoods, and ensure that you follow the recommended steps, but you are the one who will pay for, care for, live in, and create a life in your new home. The same holds true for franchise investment.
A franchise consultant can help you through the full franchise discovery procedure and make recommendations based on your feedback, but you will ultimately make the decision. Only you know if you have genuine enthusiasm for the opportunity. Only you can assess your willingness and capacity to exert effort to ensure success. You alone are aware of what your gut is telling you. Believe it; it never lies!