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Which Franchise is right for you How do you choose

Written by: Ian Macleod

Article Overview: HOW TO CHOOSE A FRANCHISE? Choosing a franchise that is right for you is one of the best actions you can take to ensure your business’s success. If you’ve already decided to buy into a franchise, the next step is to determine what franchise you want to buy. There are many different kinds of franchises, ranging from computer repair providers to video rental outlets to restaurants and everything in between. Before you start a franchise, you’ll have to decide what kind you want. A lot of thought and deliberation has to go into your decision, as choosing the right business for you can make or break your chances at success.

Which Franchise is right for you How do you choose

HOW TO CHOOSE A FRANCHISE?
Choosing a franchise that is right for you is one of the best actions you can take to ensure your business’s success.

If you’ve already decided to buy into a franchise, the next step is to determine what franchise you want to buy. There are many different kinds of franchises, ranging from computer repair providers to video rental outlets to restaurants and everything in between. Before you start a franchise, you’ll have to decide what kind you want. A lot of thought and deliberation has to go into your decision, as choosing the right business for you can make or break your chances at success.

1. What do you love to do? Unlike starting an original business where you can decide everything, a franchise comes with a pre-made, turn-key operation. This means the product or service you are going to sell is already decided for you. Selling something you absolutely hate is a sure way to meet with failure. On the other hand, if you already love something and find a franchise that sells it, you may have found your road to success.

2. How much profit? Even if you love a product or business, if the franchise isn’t going to make you enough money, you’re not going to be very happy. If you stand to make a much larger profit with a product you aren’t excited about, you’ll have to decide which franchise is more appealing to you. Making a lot of money doing something you hate may not be worth it to you. On the other hand, doing what you love and barely being able to get by isn’t exactly an appealing option either.

3. How much can you invest? Starting a business costs money, and franchises often cost a lot more than an independent. You’ll have to have a good idea of how much funding you can secure before you decide upon a franchise. If a certain franchise opportunity is outside your price-range, you’ll have to reconsider your choice.

4. How much help do you need? Along with product and name recognition differences, franchises offer different levels of support. Some are very active helping their customers, while others have less support to give. You want to find a franchise that matches your needs. If you are new to the world of business, a franchise with a lot of support will be better than one that isn’t able to offer you much. On the other hand, if you are an experienced business owner, you’ll have a wider range of franchises to choose from.

5. How established is the franchise? Some new franchises offer its owners a great opportunity: being the first one on the block to own the business. There is more risk with new franchises, but also more opportunity. Established franchises, on the other hand, usually have a more established customer base to draw upon. They also may be their own worst competition. If a market is already saturated with the same franchise competitors, you may find the going a little tougher securing a piece of the pie.

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Article Tags: business costs, computer repair, costs money, deliberation, different kinds, failure, franchise opportunity, franchises, rental outlets, restaurants



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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