Thinking of Franchising? Here’s How to Find the Right Franchise for You!
Congratulations, you have decided to open a franchise! You’ve already taken the bold first step. Now, the next step is to find the right franchise for you. We know it can be a tough process, but we’re here to help guide you through it.
Owning a franchise comes with many benefits, from being your own boss, to creating your own schedule, and with the advantage of living in the digital world, you can potentially work anywhere!
With thousands of franchise opportunities, it could be hard to find one that you will succeed in. It is estimated that almost 120 different industries use franchising, and these industries are endless: food and restaurant, technology, art and more!
Before you ask yourself how to open a franchise, you need to consider several factors that will help determine whether or not a franchise is right for you.
Yes, the possibilities are endless, but we can help narrow down the options and guide you through the steps that will help you find a franchise you’re passionate about.
What is Franchising?
Franchising is basically a system that allows the franchisee (hopefully you) to use the franchisor’s trademark and method of doing business.
A franchisee is usually a small business owner who will invest in someone else’s well-known and established business.
As explained by Michael Seid for The Balance Small Business, legally speaking, in the United States, a license becomes a franchise when these 3 elements happen:
- The franchisee needs to associate their business with the franchisor’s trademark.
- The franchisee has to pay an initial or continuing fee to enter the business
- The franchisor has to help and guide the franchisee.
What to Look for in a Franchise
According to Forbes, “From the very beginning of your search, it is important to understand the emotional connection you will have to the brand you select, as well as how owning and operating the franchise will affect you and your family.”
Ask yourself what you would want out of your franchise business. Is it just a hobby? Is it going to be your primary source of income? Do you need it to to be socially responsible? Is it just a fun side job for you? Answering these questions is very important because they are going to help you determine the level of excitement and passion you’re going to invest in this project.
Another thing to look for in a franchise, is finding something you’re good at. Working in a business where you have an overall positive and passionate mindset will only make your company more successful.
Understanding all these key elements will help you make a more informed decision as to which franchise is right for you.
Finding the Right Franchise
1 – First things first, you need to define your goal.
Yes, you might love a challenge, but your goal needs to be realistic and attainable as well. Find out what YOU really want out of this opportunity.
2- Narrow down your options
Select the industries you’re passionate about the most to help reduce the endless list of options you have.
3 – Find out how available you can be
Be true to yourself with how much time you’re willing to invest in this franchise. If you have a demanding job, you might want to consider something that doesn’t require a lot of work on your end.
4 – Determine how much you’re willing to invest
A very logical financial question every franchisee needs to figure out.
5 – Reach out to franchisors and set up meetings.
And now it’s time to pick up the phone and set up meetings with potential franchisors. Don’t hesitate to ask them questions about the advantages and disadvantages of owning a franchise to know what you’re getting yourself into.
Many people have started their own franchise and have quit shortly after. Making sure you get a clear understanding of what you want before you take any steps, will ensure you succeed with the franchise you choose.
So, What’s Next?
You’re so close to becoming a franchise owner. Now is the perfect time to start vetting potential employees or to consider possible partners to accompany you on this exciting new journey.
Now that you’ve decided on the franchise you will be investing in, it’s also time to lay out a plan for your business.
At My Franchise CPAs, our team is dedicated to helping franchisees like you maximize the value of their franchise by providing services that include business formations, initial reports, annual reports, bookkeeping, tax preparation, tax planning, pro-formas, chart of accounts, FDD analysis, and more.
Contact us today and make sure your franchise is in good hands!
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