Many entrepreneurs decide to pursue buying a franchise instead of building a business from the ground up. Buying a franchise can be a great move but there are some things to consider prior to moving forward with buying a franchise. The Franchise Expo News recently suggested the following five things to consider if you are interested in buying a franchise:
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- Franchise Options– consider purchasing a franchise that suits your personality and is something you are and will continue to be interested in.
- Start-up Costs and Financing– different franchises have different costs. It is important to find out what the price will be for both the start-up costs and the ongoing costs. Some franchises also offer in-house financing options. Additional options include seeking financing from an alternative source such as a loan from a bank.
- Income – prepare yourself financially for the period of time before your business starts making profits. While it is usually easier for a franchised business to gain clients than a start-up business you should still prepare yourself for a low income during the initial period of time after the franchise is purchased.
- Franchisor Support– it is important to know what you are getting yourself into prior to buying a franchise. Contact current and former franchise owners of the franchise business to find out if the franchisor offers a good support system. This is essential to having a good experience when owning a franchise.
- Time Commitment – Buying a franchise requires a large amount of time commitment. Long hours are required to uphold a brand reputation‚ manage staff‚ and increase customer satisfaction.
Pinning down the exact type of franchise you are intested in and conducting research on your own resources and the franchise you are considering will increase your chances of being a successful franchise owner.