If you’ve been thinking about owning a franchise, there are so many reasons why that can prove to be a really wise business decision. Franchises have a solid brand. Franchises are good investments. And when you purchase one from a reputable franchisor, you can also get a lot of training and support so that your franchise can thrive.
However, before making this kind of decision, it’s a good idea to know about some of the basic things that you should consider. By taking these franchise ownership basics into consideration, you can be sure if going into the franchise industry is truly best for you.
Consider how much time you have. When you make the decision to buy a franchise, one of the things that you’re probably going to see in the agreement is that you must be willing to devote a significant amount of your time into the establishment to insure its success. Although some people are able to run a franchise and still hold down a part-time position, you do have to prepare yourself for basically being on call and having to show up when your staff calls in sick or there are a lot of extra people at any given time.
Consider the kind of staff you hire. A franchise gets a good reputation based on two things: the product and its customer service. This is especially the case when it comes to a food franchise, because if the food is not tasty and/or the customer service is unfriendly or slow, there’s a chance that one of your customers will not return. Not only that, but there’s also a chance that they will tell their family members and friends about their experience as well. That’s why it’s important to put a lot of effort into hiring an excellent customer service staff. Forbes has a good article on how to choose the right employees. Just go to the site and put “how to find and hire great employees” in the search field.
Consider what a franchise costs. Franchises are not cheap. On average, a food franchise can run anywhere between $15,000-40,000. However, once you pay the initial fees, there is still a budget that you need to set aside for things like rent, utilities, insurance, legal and accounting fees and also the cost of debt service if you happen to borrow money to run the franchise. The key is to make a profit from the business. This means that you need to assess how much it’s going to cost to run it.
Consider the franchisor’s business model. Say that you were thinking about buying a franchise that is similar to Russo’s New York Pizzeria. Aside from factoring in the franchisor’s brand and past marketing plan, it’s also important to inquire about their future food franchise business model. In order for any business to thrive, it needs a plan for the following year and also the one that is to follow that. Being aware of what the franchisor’s goals are can help you to set some as well.
Consider the franchisor’s investment. There are some franchisees who are able to do quite well with their food franchise investment and it’s due to one main thing: the franchisor’s level of investment. If the franchisor that you’re doing business with is willing to offer training courses and to even make some financial investments, that will definitely help to take your franchise to the next level. That’s why it’s good to ask them about their plans for support before officially becoming a franchise owner. For some tips on how to build a successful franchise, visit Fran Develop and put “tips for franchise success” in the search field.