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Picking a Franchise to Buy

Guest post by: Sarah Snyder

Article Overview: Here are some questions to ask yourself to better understand your potential business opportunities.

Picking a Franchise to Buy

People are often wondering how they’re going to make a decent living in this economy. And the truth is that it is difficult. The good news is, however, that becoming a franchiser can really help you make great money without having to micromanage each site. Franchising has been around for over 50 years now and it’s because it is truly a successful business model. If you have a popular brand, it is really a no-brainer. If the demand is high for your service, product or business, give the people what they want. Branch out into new locations, share a piece of your booming business with individuals who share your goals.

Picking franchisees is hands down the most important thing you do as a franchisor. It’s important to pick people who are not only experienced but have a great reputation, connections and personality. It’s important that your franchisees mesh well with your vision of your business. Here are a few preliminary questions that a franchisor is likely to ask you when you're looking to purchase a franchise:

1. What is your background in business? It also might be important to give them a personality test to make sure their people management skills is up to par with what you have in mind for your brand.

2. What is your experience with finances? A third party background check might also be important here.

3. Where do you see yourself in ten years? Do they want to be complacent or do they want to grow your business and expand their territories?

4. Why are they interested in owning this franchise in particular? The interest in your specific brand seems like a no-brainer, but you want someone who is passionate and will be a great advocate for your business.

5. Making money as a franchisee is easier than ever with new financing options and banks lending to small businesses, but you have to be smart about making decisions and deciding what kind of industry you'd like to be in is the first step.

The franchising opportunities are endless if you commit to find the best business for your schedule, time commitment and available funds. Check out Franchise Clique to find out all of your options and how you can best prepare to become your own boss!

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Article Tags: business opportunities, franchises for sale



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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