So you are thinking about becoming an entrepreneur and want to be in business for yourself without being in business by yourself. That is the concept of franchising. But with hundreds of franchise opportunities out there, deciding which one is right for you requires much research. We have outlined 5 things you should consider in no particular order.
Choose the right industry. Some industries experience more growth than others. Getting into an industry during an initial growth phase is great. However, you want to make sure that you are not investing in a fad that may not stand the test of time. Some industries have more longevity and long-term growth potential. Take the health and fitness industry for example. It has proven to be one of the most consistent and growing industries.
Consider your interests. Pick any successful franchise and you will find some franchises that do awesome and are very profitable, while others that struggle. Though there are many factors that contribute to this, it is safe to assume that franchise owners that genuinely have an interest in what they are selling out perform others. You should make sure that you will enjoy the environment, clientele, and day-to-day activities of the franchise you choose.
Franchise Support. When purchasing a franchise you are not just buying the formula, rather you are also counting on day-to-day support to help you be successful. What will the company do for you to help you be profitable? Good franchises provide great support to their franchisees in the form of training, marketing, consulting, real estate/site development, accounting, purchasing, legal, technology, and more.
Cost. The price of the franchise is obviously an important factor. You do not want to spread yourself too thin. Go with a franchise that you can comfortably afford. Franchise costs can vary from $10,000 – $500,000.
Growth Potential. What are the possibilities of expanding and opening new stores or locations? Some of the larger quick serve restaurant franchises limit the opportunity to grow. Acquiring new franchise locations could be extremely competitive and some franchisees go decades waiting for additional location opportunities to open up. If you goal is to just own 1 franchise then this is not a huge factor. However, if your mid to long-term ambitions are to grow, than consider the growth opportunities / potential for additional franchise locations.