There are many different ways you can start a business these days. You can set up your own venture from scratch, which requires significant time and effort, or you can purchase an existing business from someone who has established a company and is moving on. Another option is to invest in a franchise opportunity, which allows you to leverage the reputation and success of an established company. This can be a more straightforward and less risky path to business ownership, as the franchisor provides support and a proven business model.
Franchises offer aspiring business owners a unique opportunity, providing a ready-made business model and a support system. In the US alone, there are over 750,000 franchise opportunities, accounting for a significant 10% of businesses with employees. These opportunities span various industries, from fast food chains like McDonald’s and Subway to service-based businesses like The UPS Store and H&R Block.
But what should you know about franchises to see if they are suitable for you?
Reasons a Franchise is Right for You
You Passionate About What You’re Selling
Unlike starting a business that you are passionate about, with a franchise, you are essentially buying an out-of-the-box business that is ready to go, not something you are creating. This means you need to think carefully about whether or not you will be passionate about the products or services you will be offering. If you are not able to find a franchise that aligns with your interests or values, then a franchise might not be for you.
Are You OK Taking Directions From Others and Following Regulations
A franchise can be an excellent idea if you want the support and help from others to ensure your new venture is a success. However, you need to remember that there will be rules and regulations you need to follow as per company guidelines. While you will still be in charge of running your franchise as the franchisee, there will still be a company image to adhere to, and if you don’t feel you’ll be able to toe the line, it might be worth rethinking this as an avenue to follow.
You Want To Succeed
Franchisees are set up for success and will have help and guidance. While it’s not guaranteed, you still need to put in the hard work and make sacrifices to build on the reputation of the brand you are aligning with. However, the potential for growth and success is immense. You can start with one location or a small operation; then, you can expand it to as many outlets or with as many employees as you wish to grow your business under the franchise. A franchise review management service can help you to ensure all of your different outlets or locations are operating as they need to be to allow you to make them the best they need to be.
Do You Have The Funds Available?
Unlike some business opportunities that you can start on a shoestring budget, starting a franchise requires a hefty upfront investment, and you need to pay this off before you can get up and running. Not only this, you need to be able to sustain the business until it turns a profit, including being able to pay staff, buy inventory, market your business, outfit rentals, etc. It’s crucial to be financially prepared and have a solid plan in place to ensure the success of your franchise. You will likely be supported by this venture from the company you are investing with, but you still need to have the funds available because the franchise isn’t guaranteed to be successful from day one despite the support you will be getting.
