At this point, you’ve learned enough about franchising to know you like the idea of using a proven model, setting your own hours, and getting behind a well-known brand, you still have one question: Am I ready to buy a franchise?
The InXpress team hears this question a lot—and for each person there’s a unique answer. But no matter what your background, there are a few key things everyone should consider before deciding to buy a franchise.
Let’s talk through it together.
There are thousands of great franchises out there. We love it when people work with us, but we want our franchisees to be confident in their decision. Make sure you check out the options in industries that interest you— and fields that play to your strengths. Once you have a solid list of franchises you’d be happy with (3-5), you know you’re ready to dig deeper to find your match.
After you have some ideas of what franchise you might buy, you need to know what to look for in a franchise. Check the details in your Franchise Disclosure Document (FDD), and see what does (and doesn’t) match up with your goals, your strengths, and your values.
Are they growing? How’s their reputation? Have they avoided legal issues? Are their franchisees seeing consistent revenue and margin increase? Do they take great care of their franchisees? These are great questions to ask to help you feel more ready to buy a franchise, and your FDD will have the answers.
It’s not cheap to buy a franchise, but it is often more affordable than investing in and starting a traditional business— especially if you’re looking into a franchise that uses a home-based model. Just make sure you plan for the initial investment, royalty fees, and any staffing costs you anticipate. [You can find detailed information about what’s entailed in your investment in the FDD.]
One of the best things about the franchising model is the support it offers franchisees. Your franchisor wants you to have what you need to succeed, because it means the parent company—and the brand—succeed too. You can also expect support and mentorship from other franchisees throughout the life of your business
You should know before you buy a franchise that there are rigorous standards to meet in almost every facet of your business. And it’s not just about following branding guidelines. It’s making sure you’re doing everything you can to uphold your parent company’s reputation. Don’t worry, though. Just get detailed information from the franchisor about what they expect— and have a coach or mentor that can encourage you along the way.
Being the boss of your franchise means you’ll have unique opportunities— and face new challenges—-you may not have before. You’ll need to know what’s involved in the day-to-day of the business— and how to plan your work to meet your goals without burning out, or falling short.
If you’ve been wondering “Am I ready to buy a franchise?”, you don’t need to let your questions overwhelm you. We can help make sure your due diligence is clear, thorough, and helps you find a franchise that matches your goals, and meets your standards.