What makes a good franchise opportunity?
What makes a good franchise opportunity?
Well-known respected brand
While it doesn’t ensure success, buying a franchise of a well-known brand will certainly be a lot easier than investing in one that hasn’t established itself yet.
An established company means brand awareness and guaranteed customers for your franchise, which will save you a lot of work and stress.
Experienced franchisor
Something that goes hand-in-hand with a well-know brand is an experienced franchisor – if they’ve built their business into a successful franchise, they obviously know what they are doing.
Look for a franchisor that has a variety of experts in the management team (a franchise expert is essential, and so is marketing and finance), has been working with the business model for a long time and has streamlined systems and processes.
Good location
You know what they say – location is everything. You need to be able to operate your franchise business from a place that suits you and suits your target market.
Make sure your location isn’t already full of your competitors and that you have a large enough marketing area and population to attract new customers. When it comes to your premises, make sure you can afford it and also that it meets the needs of your market.
Quality product
If the franchise doesn’t have a good product, you’re wasting your time and money. It needs to be high-quality, marketable and priced competitively so you have a chance at success.
The franchisor should invest a significant amount of their profits into research and development so they can continuously improve the product. It also helps if they and you are passionate about what you are selling.
Profitability
When it comes down to it, money will be the most important factor in your decision to buy a franchise – if it’s not profitable, then it’s not a good franchise opportunity.
Once you get past the initial enquiry phase in the franchise process, you will get access to detailed financial information about the franchise. Get an expert to go over the information with you to find out if the business is profitable – look at things like franchise fees, residual income and resale value of the business to determine if it is a worthwhile investment.
Support
The main reason why people choose franchise businesses over starting from scratch themselves is because they don’t want to go it alone – so make sure the franchisor offers adequate support.
You will need initial and ongoing training on the products, the industry and running the business, as well as technical and marketing support and access to a franchise manager to help you overcome challenges and keep you motivated.
Suit your situation
This is probably the most important part of a good franchise opportunity. It’s essential that you choose a franchise business that suits your personality, your schedule, your goals, your budget and most importantly your skills.
If you’ve done some research into a business and aren’t sure if it’s for you, go and chat to some of its most successful franchisees and find out what they are like. If you have a lot in common with them, then you’re on the right track. Also, it’s important that you be honest with yourself about what you can do, what you can afford and what you want to achieve.
A final word of advice - make sure you do your research so you can make an informed decision about the franchise opportunity. Choose one that meets the criteria above and you’re off to a great start!
What makes a good franchise opportunity - To learn more about this author, visit James Greig's Website.
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A good franchise opportunity will have all of the following things:
Well-known respected brand
While it doesn’t ensure success, buying a franchise of a well-known brand will certainly be a lot easier than investing in one that hasn’t established itself yet.
An established company means brand awareness and guaranteed customers for your franchise, which will save you a lot of work and stress.
Experienced franchisor
Something that goes hand-in-hand with a well-know brand is an experienced franchisor – if they’ve built their business into a successful franchise, they obviously know what they are doing.
Look for a franchisor that has a variety of experts in the management team (a franchise expert is essential, and so is marketing and finance), has been working with the business model for a long time and has streamlined systems and processes.
Good location
You know what they say – location is everything. You need to be able to operate your franchise business from a place that suits you and suits your target market.
Make sure your location isn’t already full of your competitors and that you have a large enough marketing area and population to attract new customers. When it comes to your premises, make sure you can afford it and also that it meets the needs of your market.
Quality product
If the franchise doesn’t have a good product, you’re wasting your time and money. It needs to be high-quality, marketable and priced competitively so you have a chance at success.
The franchisor should invest a significant amount of their profits into research and development so they can continuously improve the product. It also helps if they and you are passionate about what you are selling.
Profitability
When it comes down to it, money will be the most important factor in your decision to buy a franchise – if it’s not profitable, then it’s not a good franchise opportunity.
Once you get past the initial enquiry phase in the franchise process, you will get access to detailed financial information about the franchise. Get an expert to go over the information with you to find out if the business is profitable – look at things like franchise fees, residual income and resale value of the business to determine if it is a worthwhile investment.
Support
The main reason why people choose franchise businesses over starting from scratch themselves is because they don’t want to go it alone – so make sure the franchisor offers adequate support.
You will need initial and ongoing training on the products, the industry and running the business, as well as technical and marketing support and access to a franchise manager to help you overcome challenges and keep you motivated.
Suit your situation
This is probably the most important part of a good franchise opportunity. It’s essential that you choose a franchise business that suits your personality, your schedule, your goals, your budget and most importantly your skills.
If you’ve done some research into a business and aren’t sure if it’s for you, go and chat to some of its most successful franchisees and find out what they are like. If you have a lot in common with them, then you’re on the right track. Also, it’s important that you be honest with yourself about what you can do, what you can afford and what you want to achieve.
A final word of advice - make sure you do your research so you can make an informed decision about the franchise opportunity. Choose one that meets the criteria above and you’re off to a great start!
What makes a good franchise opportunity - To learn more about this author, visit James Greig's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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