This article are provided for information purposes only, and are not intended as legal advice.


What do you look for in a franchise?

March 16th, 2009

Franchises are fantastic – if you pick the right one; you won’t have to re-invent the wheel and chances are they’ve been through a lot of the learning and mistakes for you, especially if they’ve been around awhile. 

I would recommend doing a strong self-assessment first to understand who you are and your passions and interests – what gets you jazzed!  Even though franchises have lots of advantages, it will still be a business start-up and your success will be up to you, so pick something that has all of the key elements that ensure you’ll want to get up and do what needs to be done, even on a lousy day.  Some things to consider:

Do you prefer B2B or B2C?
What kinds of hours?  Normal biz hours?  Nights?  Weekends?
What kinds of people do you want to sell to  – the general public, a purchasing guy or the ultimate decision maker and boss?
What kinds of relationships do you want – transactional or more personal and deeper and longer lasting?
Lots of variety and flexibility or lots of routine?
Lots of employees or few or none?
Higher skilled professional employees or low-skilled?
High volume low profit margin or the opposite?
High degree of challenge or not very challenging?
A growing expanding industry or one that is already saturated?
Working with tangible things or more with people and intangible ideas?
Something that will teach you new skills or something you already know?
Strict adherence to their pre-defined processes or a place where you can also add your own critical thinking?

Only you know yourself, so give those good thought to narrow your list.  From there, pick those that come closest to your ideal role and duties.  Then do the research, meet their team, talk to franchise owners and find out who you’re most like – their more successful ones or those that struggled.  And then choose what fits best based on overall opportunity, future opportunity, financial strength of the franchisor, their leadership position, overall training and support that is provided, culture, strength of management, strength of existing franchisees, etc..  The more things you can stack in your favor, the more opportunity and less risk you will face early on and long term. The leader in its industry is typically the safest bet (if they are still offering new franchises) you can make – after all they are the leader for a reason and in that position probably have much deeper pockets, better market, better support, better training, a better brand, etc.. 

Financially, total cost of franchising will be far less important than the overall ROI you can generate; it is very different than total cost of business which will include a significant amount of lost opportunity income and ROI if you pick the wrong franchise.  Some franchises may look more expensive than others on the surface, however, may provide a much superior opportunity for return on investment, deeper systems and support, stronger infrastructure, etc.. that you can leverage further and faster than a newer, younger, cheaper alternative that may or may not even be in business in a few years.  Find out what the top performers are doing to assess overall potential, then build your own pro-formas factoring in your abilities and make a fully educated decision, based first on YOU, then on the various opportunities that ultimately make your short list.

Good luck.  If you do this right, you will never look back

 

Craig Hohnberger
ActionCOACH of OH, IN, WI, MN
www.actioncoach.com/craighohnberger
craighohnberger@actioncoach.com
tel (614) 833-3211


Filed under: Franchises — Gary Landa @ 10:33 am


1 Comment »


  1. Franchising is a great business option, it gives you the opportunity to go into business with an excellent chance of success, while at the same time minimizing your risk of failure, great website with the latest Franchise Opportunities and Ideas, work at home franchise opportunities as well.

    Comment by Anthony — March 24, 2009 @ 10:27 pm


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