The Franchise King
Buying a franchise is a big deal. It can be a sizable investment. It will definitely be life-changing.
(Not as “life-changing” as going overseas as a member of the U.S. military to protect us, but life-changing nevertheless)
That’s why it’s crucial to take a step back at some point during the franchise researching and purchasing process. Catch your breath. Reflect on what you may be about to do.
The research phase of the franchise purchasing process is what separates the men from the boys, and the women from the girls. It’s super-important to take the time needed to do thorough research. This is when emotion needs to move out of the picture. Its when fact-gathering needs to take its place. Unfortunately, a lot of people who are contemplating franchise ownership rush through their research. Please don’t.
Here are 5 really good questions to ask existing franchisees as part of your research…
1. What do you like best about being a franchise owner, and what don’t you like?
2. How challenging is it to find good, reliable employees?
3. From 1–10, 10 being great, and 1 being not-too-great, how would you rate your relationship with the franchisor?
4. From 1–10, how do you rate the marketing, advertising, and promotional programs offered by your franchisor?
5. If you had to do it all over again, would you still buy this franchise?
Start calling some franchisees up and ask those questions!
It’s one thing to do franchise research, it’s quite another to move into buying-mode.
Buying mode means that you’ll be investing your money. Money you could lose.
Ignore some of the things you hear about franchise ownership being less risky than independent business ownership. Statements describing franchising as being “low-risk” compared to other ventures just aren’t true. But, there are few things you can do to lower your financial risk.
Do great research.
Work with a franchise industry insider.
Take a step back when you start getting close to decision time.
It’s so important to do.
“It’s when you hit the pause button…when you step back and take a little breather, that good things can happen. Things like possibly getting a better perspective about what you may be about to do from people who will give you honest feedback.”
That was from an article I wrote for The U.S. Small Business Administration.
You should really read the whole article. It’s about taking a step back, and getting help from people you know before you take the plunge.
(The Franchise King®, Joel Libava, is a top franchise expert, the author of Become A Franchise Owner! (Wiley Publishing), and owns and operates Franchise Business University, where you can increase your franchise IQ with the online franchise courses offered there.)
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