Before you dive headfirst into buying a franchise, there are some key elements you need to consider.
Do a sense check for compatibility.
If you are not a night owl, buying into a restaurant that serves dinner will not suit you. Make sure that the business you enter into can fit your lifestyle.
Study the field
You do not have to have studied to be an aesthetic therapist to open a beauty salon, as long as you know how to run a business. But, you should do your research and figure out the ins and out’s of the industry and business.
Food and beverage have a host of regulations you may need to be aware of before entering into it.
Assess your strengths
Know what you are capable of. If you need to be customer-facing, you need to ensure you are a people person. If it requires precision and analytics, you need to know how to do that job or hire in the skill.
Do due diligence on the expenses.
Most businesses, when they are looking to sell, will downplay the expenses. It is essential to ensure you are very well-versed in the industry and the legal costs you may incur. Staff wellness, taxes, etc., are all something to consider before you just jump in.
Don’t believe the “franchise lie.”
People sell the dream. It is only ever the good and fun that is promoted. Owning a franchise is hard work, and you have to ensure you comply with head office regulations. Get to know the Franchisor as well as the business. What contingencies do they have in place in terms of insurance? Incidences (Even business interruption insurance for Covid) can catch people unawares.
Know what your obligations are in terms of payment, refurbishes, and suppliers. What are the levies and requirements to uphold your agreement?
Speak to other franchisees
Ask for contact details of other franchisees and see them get a full view of their experience. If you speak to them without the Franchisor around, you may get a different perspective than if everyone was in the room.
Speak to a few, not just the top performers.
Read the contract
Understand what you are in for with regards to money, payments, legalities, etc. It is not a good idea to brush over some key legal elements.
Ensure you are not personally liable for any significant issues and have the required insurance in place for those events nobody expects to happen.
Enlist professional help
If you feel you don’t have the required skills, hire the best to get you up and run. It is no use paying school fees for years when you can succeed earlier on, just by getting in good staff.
Work in one of the shops
Get first-hand experience in the stores if you can. You will see how the process works, the good, the bad, and the ugly.
If your business needs help with cash flow, buying a franchise or growth business loans, get in touch with us on 0861 93 93 93 or email us on email@example.com or contact us here.
For more tips on business, follow our social media pages.