20 Sep Reasons Why You Should Become a Franchisee
In the modern world, starting on a business venture has become an excellent option for people that want to get out of the 9-5 grind, have a passion for working in a certain field and be their own boss.
However, there can be a number of hurdles that can crop up when establishing any business from the ground up, such as the costs of setting up a business, developing a strong branding and marketing and running it efficiently.
Unfortunately, the energy and time needed to become successful in these ventures become the limiting factors for most people. You have to take into consideration aspects like the risk of failure, the speed at which you will get returns and the total investment you have made in the venture.
Why you should become a franchisee
This is exactly why many people now opt for a franchise business. A franchise will have an established brand with proven services or products. There are a number of benefits to joining a franchise business such as:
- Established brand name and reputation
- Minimised risk of failure
- Set and proven business methods
- Tried and tested systems, products or services
- Territorial or site selection policies
- Assistance with launch and franchisee training
- Reliable on-going support
- Well-designed marketing programmes
- New product development and on-going research
Keep in mind that as a franchisee not only do you sign a legally-binding agreement, but are also part of broader system that has a corporate vision and set of values. And so, you need to sync and fall in line with its vision and can’t have your own.
Here are some things you should keep in view
- The recommendation is that you should opt for an industry that you have some knowledge in or are passionate about as that will help you build contacts and establish yourself more easily.
- It’s important that you be proactive while looking for a good franchise opportunity.
- Research the business and its workings and what its standing in the market is.
- You can get some advice from experienced franchisees connected to that brand. You will find their contact details in the documents the franchisor provides as part of their disclosure process. Talk with multiple franchisees to be sure that you don’t just speak to someone that has had the worst or best impression of and experience with the business.
- It’s also a great idea to get advice from a professional franchising consultant.
- Examine all the documentation from a legal and commercial viewpoint. In fact, it’s best to get some professional legal advice before making any decision and signing on the dotted line.
- Create a 5-year financial plan based on the information provided and your understanding of all likely operating costs and income streams for similar businesses. This will also include the total cost of your investment and returns.
Following these steps will give you a better idea of what you are getting into and whether it suits your requirement, aspirations and current situation. When it comes to making such an important business decision, it’s never a good idea to let emotions rule those decisions.
The bottom line is that you should be prudent and never make haste when you are taking a business decision. Franchising can give you financial security and you can succeed in expansion as well, but you need to build a solid base for that to happen.
If you want to know anything more about setting up a franchise business or want some sound and professional advice, call The Franchise Institute on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435