Is Franchising Right For You?
Your job is to make an informed business decision about whether a franchisor's business opportunity meets your needs and whether you can provide what the franchisor wants and needs in a franchisee. You need to ask yourself some basic questions:
- What do you want from life at this time?
- What are your wants, needs and desires?
- What are your goals, objectives and dreams?
- What are you looking for in a business?
- Have you decided to leave what you are doing now - not just the job, but the profession?
- Have you made a decision to become a part of another organization?
- Do you have the kind of personality that can accept running the business according to someone else's plan without feeling that it compromises your individuality?
- Can you follow somebody else's rules, even when you think you have a better way?
- Do you think you can change the franchisor's system after you are on board?
- Do you think that your local market is different from all others in the system and that the franchisor will modify the system just to suit your needs?
- Can you trust (with some honest skepticism) that your franchisor is working for the benefit of the entire system - even when his or her decisions do not necessarily go your way?
- Are you willing to share financial information and provide required reports each month? Are you prepared to accept coaching and advice on business practices from your franchisor's field staff?
- Do you have an interest in doing this kind of work for the length of the agreement?
- Have you ever worked for one company for five or ten years?
- Do you have related skills, knowledge, abilities and work-related experiences similar to the ones required for running the franchise you are considering?
- Do you have the financial resources to open and operate the business successfully?
- Can the business support your lifestyle needs?
- Which of the franchises you are now reviewing meet your financial needs both in the short and long term?
Questions to Ask Yourself
- How much capital do you have to invest?
- How much liquid assets do you have?
- Do you require a specific level of annual income?
- Are you interested in pursuing a particular field?
- Are you interested in retail sales or performing a service?
- Do you want a part-time or fulltime opportunity?
- How many hours are you willing to work?
- Do you want to be an "active" or "passive" owner?
- Do you want a "brick and mortar" business?
- Do you want to have employees?
- Do you want to have inventories?
- Do you want to have accounts receivables?
- Will franchise ownership be your primary source of income or will it supplement your current income?
- Would you be happy operating the business for the next 20 years?
- Would you like to own several outlets or only one?