Buying a franchise requires a big investment. It involves investing your time, capital, and dedication. Before making the leap into buying your first franchise – or your first franchise under a new brand – be sure to go through the following steps.
Dive into Demand
What is the demand for the business offerings? While you may love sugary donuts, the health focused people of the city may not. Another example is that an auto care center may not do as well in New York as it would in Florida, where there isn’t the same amount of public transportation available. It’s important to understand overall demand for the product and demand for the specific location you are looking at.
Read Reviews
It’s important to find out what current franchisees think of the franchise. Are the rules too harsh? Not enough ongoing support? Feel free to reach out to current owners over LinkedIn or by scheduling a phone call to get a better idea of their true thoughts. They may say they’re trying to get out of the business as soon as possible, or they may be working to buy more.
Plus, read up on customer reviews at locations near you. If consumers aren’t used to having a good experience, it may make opening and attracting customers harder for your potential location.
Consider Competition
As part of your planning and vetting process, it is important to consider what competition is already established in the area. If you are considering opening a Dunkin’ Donuts half a mile from a Starbucks, you will face tougher competition than a Midas auto shop that is half a mile from Starbucks.
Seek Support
It is important to take the time to learn what support is offered for new franchisees. Whether it’s your first franchise or your first one of the brand, there is always more to learn. This may include orientation, peer mentorships, and written best practices from your potential franchisor.
Assess Yourself
You may want to invest in owning a franchise for the financial benefits, but this type of business isn’t for everyone. If you like coloring outside the lines and making your own rules, operating a franchise according to strict guidelines may not be easy. But, if you like to stick to the rules and thrive with stability, you’re more likely to thrive with this type of business.
When you decide to buy a franchise and get ready to open, consider using Sprockets’ Applicant Matching System to ensure you only make the best hires for your new business. Learn more about Sprockets.
Check out this article we think you might enjoy: Franchise Grand Opening Best Practices.