With back-to-back layoffs and dissatisfying careers, many people are choosing to take control of their professional and personal futures by engaging in entrepreneurship. Franchise entrepreneurship is one of the best vehicles that can take you from employment to empowerment with a proven business model and an existing support system. However, your success depends on the franchise you choose. In this article, we’ll discuss tips for finding the right franchise.
Consider your values
When you explore franchise entrepreneurship, you want to find a franchisor that shares the same passions and values as you. Is there a management style you prefer? Are you looking for a franchise that supports environmental sustainability and awareness, trying to minimize its carbon footprint? Figure out what your values and passions are and what you want your working environment to be.
Franchising can be very rewarding, especially if you do your research ahead of time. Technology has made it possible for franchisees to have an online presence and finding information regarding a prospective franchise should be easy. The information you find online makes up for just a step into the research journey.
Attending franchise expos gives you a chance to meet your potential franchiser and have a one-on-one conversation. Additionally, you can consult a franchise broker to advise and guide you on finding a franchise that aligns with your goals and within your financial capability.
Assess your financial capacity
Choose a franchise that you can afford to invest in. Bear in mind that it will require working capital that you will have to cater for before the business picks. Ensuring that you can support the business beyond its incubation period will help you choose the right franchise. Don’t forget your tax obligations, such as the VAT (value-added tax), which you must cater for whether you’re making profits or not.
Decide the level of support you need
The amount of support you get from a franchisor can have a huge impact on your business. Having a 2/7 helpline, attending a networking event, having monthly visits from the franchise CEO, and ongoing business support can significantly foster collaboration.
Carefully read the franchise disclosure document
A franchise disclosure document (FDD) is a legal document that the franchisor has to disclose to the franchisee before the franchise is sold. The FDD includes a 23-part document about the franchisor, the available franchise opportunity, the fee the franchisor is charging, the legal relationship between a franchisor and franchisee, the franchisor’s financial statements, and any other information concerning the franchise.
Ensure that you understand your obligations and rights as well. The amount you need to pay to acquire the franchise is usually indicated on the FDD. Assess all the information and consult a lawyer if there’s anything you don’t understand. Once everything is clear and you have all the facts, you can decide if the franchise is worth your consideration.
Franchising is a worthwhile investment with numerous benefits if you find the right one. Implementing these tips will help you find the right franchise.