Buying a franchise is a significant moment in your entrepreneurial career. It can be the launching pad for a successful business that may one day grow into a multi-unit franchise empire. The question is, how do you find the right franchise opportunity for you? There are thousands of franchises to choose from, which can be overwhelming for anyone looking to own a business of their own.
If you are wondering where to start your search, check out these five first steps to franchise ownership. And if you still have questions, feel free to reach out to our team at Hundred Acre Consulting.
Define Your Goals
Defining and setting your goals is an important starting point in your franchising career. Before you begin your search, we advise you to do some soul searching. Ask yourself why you want to invest in franchising and what you hope to get out of the business opportunity.
What are your passions? What type of business do you want to own? Be brutally honest with yourself, as the answers to these questions will help guide you and narrow down your choices as you try to find the right franchise opportunity for you.
Determine Your Involvement
There are two main franchising concepts you can choose from: full-time and semi-absentee franchising. Taking the time to consider what you want your schedule to be and your desired level of involvement is vital when trying to find the right franchise opportunity for you. They breakdown as such:
Full-time: Most common franchise concept. Franchise owners often leave their jobs to dedicate their full attention to their business and are completely hands-on with it until the franchise starts to profit. After which, they hire a general manager to oversee daily operations.
Semi-absentee: A favorite concept among entrepreneurs looking for passive income, semi-absentee franchising doesn’t require owners to be completely hands-on. It allows them to monitor from afar and do minimal maintenance while turning a high profit (think vending machine or childcare franchises).
Do Your Due Diligence
The next step in your journey to find the right franchise opportunity for you is to do your research. Don’t get caught up in the excitement of owning a franchise without first ensuring that the business venture is perfect for you.
Start by consulting the Franchise Disclosure Document (FDD). This 100-plus-page document is an excellent resource for learning about what to expect with fees, rules and regulations, litigation history, and training. And lastly, if a franchise offers discovery days,
Know Where Your Help Comes From
Franchises are well-known for their unparalleled support that many franchisees receive from their franchisors. Having the right support system can help lay the foundation for a healthy and successful business. However, not every franchise offers support equally.
While researching, determine whether your franchise of choice has the initial and ongoing support you need to be successful. With permission, you can reach out to existing franchisees to ask questions and gain more insight into the onboarding process, working with the franchisors, and business struggles.
Leverage Your Capital
A franchise cannot get off the ground without having sufficient capital to support it. Knowing how much money you have to invest in a business can give you a realistic idea of what franchise opportunities are right for your budget. It is also important to know how much money you have because you will likely need to live off while you get your franchise up and running. It is common for businesses — whether franchise or from scratch — to take some time before they start to turn a profit, and you must be prepared for this.
Contact Us: Hundred Acre Consulting
The journey to find the right franchise opportunity for you have many parts, but you can kickstart your search with these five tips. Another step in your search is enlisting a franchise consultant’s services like mine to get you on the path to success. At Hundred Acre Consulting we have more than a decade of experience in the franchising industry, which means we can help you find the perfect franchise opportunity and consult you throughout your franchise career.
If you are interested in working together or learning more about our services, contact our team today, and let’s chat!