3 Things To Consider Before Becoming A Franchise Owner
When visiting your local chain restaurant for lunch every day, you may notice a sign or a pamphlet that is marketed toward future franchise owners. This material may say something like “Join The Winning Team With This Franchise” or “Join This Huge Franchise Opportunity”. The idea may be tempting to consider being the owner of your very own piece of a successful franchise, but here are a few things to consider before becoming a franchise owner.
Be In The Know About The Money It Will Require
When it comes to business, especially about owning your own franchise, you have to be able to know what kind of money it will cost you up front, as well as the cost to run the franchise on a daily basis. Jeff Elgin, a contributor for Entrepreneur.com who also has almost two decades worth of experience in the franchise business, lists out the top 10 money questions to ask yourself before buying a franchise. It’s important to ask yourself these type of questions regarding money as it is never a good idea to become a franchise owner if you are not ready or capable of handling such an investment.
Is The Franchise Business Model A Good Fit For You
Just because you may frequent a chain restaurant or other franchise doesn’t necessarily mean that it could be the right move to own one. It’s important to do your research as every franchise works with a different type of business model. It is also important to know that all franchises have certain sets of rules (i.e., dress codes, pricing, and even cleaning practices) that need to be followed. Sean Kelly, publisher of UnhappyFranchisee.com, notes “Franchising is similar in a lot of ways to joining the military in that you’re going to agree to follow orders…”. Make sure you are prepared to follow these franchise rules in order to become a franchise owner.
Be Prepared For A Huge Time Commitment
Being a franchise owner can definitely seem appealing. You may have the idea that you will buy a franchise, hire employees, or manage existing employees and show up every now and then to check up to see if things are running smoothly then go cash a big fat check in the bank. Unfortunately, that is not the reality for franchise owners. Be prepared to put in a lot of time, especially in the beginning. You will have to go through training and then depending on if the franchise is already existing or brand new, go through the process of hiring and managing employees, dealing with purchasing and paychecks and about a million other things that are not that glamorous.
As with any important business move, it comes down to doing your research about becoming a franchise owner. Do you want to become an owner of a new or existing franchise? What are the advantages and disadvantages of buying an existing franchise? Is your personality a good fit for the franchise rules and regulations? Asking yourself these questions will give you more clarity if becoming a franchise owner is right for you.
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