Becoming a franchise owner is an exciting and lucrative business opportunity that tons of entrepreneurs seek. However, many get lost in the hype of potential business ownership and forget to do their research. That’s what we at Hundred Acre Consulting are here for.
So, before you express interest in a business and join the nearly 773,000 franchise owners nationwide, here are some important questions to ask before buying a franchise.
Questions #1: Is Franchising for Me?
Franchising is perhaps one of the most popular business ventures for entrepreneurs. It’s not difficult to see why: you get training and support from your franchisor, its proven business model makes it easier to find success, etc. Despite the luster of franchise ownership, one of the most important questions to ask before buying a franchise is whether it’s for you. After all, franchising isn’t for everyone.
Ask yourself whether you can handle the long hours, have enough access to liquid capital to purchase and support your business, or even if you can handle following the system a franchisor has in place. Answering these questions informs if franchising is for you and the potential challenges you may encounter along the path to success.
Question #2: Do I Want to Be a Part-time or Full-time Franchisee?
Most franchise opportunities are a full-time gig, which means, if you have a day job, you’ll likely have to leave it to devote all of your time and effort to your new business venture. But there is also the option to own a semi-absentee franchise, which requires less capital and less time spent growing it.
This is an important question to ask before buying a franchise because it is important to consider what kind of franchise is best for you. Do you want to continue working a day job or invest fully in your up-and-coming franchise? The answer is crucial.
Question #3: What is Your Role in My Success?
A franchise is only as successful as the tools its franchisor equips them with. So, before you go investing, be sure to ask this fundamental question. Everyone learns differently or may require more help in different areas than others, and you need to know if your franchisor can help you with everything you need. A few examples of extra support include:
-Providing additional financial assistance
-Helping you find the best location
-Offering a starter kit
-Having more training opportunities after onboarding
Question #4: Is This Franchise Opportunity a Good Fit?
Another important question to ask before buying a franchise is whether the opportunity is a good fit. Determining if the company is right for you can range from the level of training and support you receive to the technology used and the goals and values the company upholds. This is why every entrepreneur should first do research.
One way to learn if the franchise of your choice is going to be a good fit is to consult existing franchisees with the brand. A number of them are open to having honest conversations about their experiences buying a franchise and what it’s like to work with the franchisor. You can also read the franchise disclosure document (FDD) and gain insight into the company you’re interested in. Through this document, you will learn about fees, a franchise’s legal troubles, and more.
Hundred Acre Consulting
Countless other questions that should be considered and asked before buying a franchise. We hope that our top four picks give you an idea of the kinds of questions you should ask before buying a franchise. If you have more questions about buying a franchise, Hundred Acre Consulting can help. We can help you find the perfect franchise opportunity and consult you throughout your career.
Are you ready to work with us or learn more about our services? Contact our team today, and let’s chat.