There is a wide range of franchise opportunities and there are too many sectors to research them all thoroughly. But you can speed up the process by assessing your skills and your resources. What are your priorities and how deep can your financial resources go?
Once you have your criteria it will be easier to shortlist your franchise prospects and you’ll be saving time and energy.
Questions to ask yourself
To help you narrow down your search, here are some questions to ask yourself:
- Why do you want to get a franchise? Whether it’s making more money or having a passion for your field, it’s important to identify your goal.
- Is there a specific industry that you have in mind or are you flexible?
- What are your skills and what do you enjoy doing? A retail franchise will likely suit you better than an internet franchise if you’re a people person. You’ll be more motivated to run a business that you are interested in as well.
- Would you prefer a fast-food franchise to reduce your risk?
- Do you want to operate it personally to lessen cost or will you be hiring staff?
- Are you on a budget? How much cash are you willing and able to invest? Do you have backup funds? Internet-based, home-based, and van-based businesses usually have lower costs compared to retail or food service franchises because it requires supply and equipment, other facilities, and staff.
- How much time can you commit, and will you be willing to work on evenings and weekends? You should weigh your options especially if for example you have young children.
Once you have made your self-assessment, you’ll be more confident to decide which industry or franchise you would pursue getting. You can browse available businesses here: https://advancebusinessbrokers.com/businesses-for-sale/
Questions for the franchisor
- What is the estimated time frame for you to make a profit?
- How much working capital is needed in the meantime?
- How much income are the existing franchisees generally earning?
- Can you contact some of the existing franchisee to ask for feedback directly? Be cautious of those who insist on contacting just a few handpicked franchisees.
- Do they provide training and support? If so, what are the details?
- To what extent are they willing to provide support in finding your premise and fit out if necessary?
- Are there other fees you need to pay?
- What are their development or growth plans?
- Are they compliant with the Franchise Code of Conduct? The code sets out your rights and obligations as a franchisee and this is regulated by the Australian Competition and Consumer Commissions (ACCC).
However, it’s important to do your own independent research. Don’t just rely on the information given to you by the franchisor.
Do a background check on the company. Research how its assets have receded and flowed over the years. Are they still on a good track?
Search the brand name online and check for any media attention about the company. Take note of the positive coverage like sustained growth in profits, new product line, or positive community work. Negative articles might include corporate scandal or poor trading.
You may also go through the customer reviews on their website or social media pages to evaluate public opinion of the brand.
Effectively choosing a franchise that works for you means knowing precisely what you want out of your endeavour, your financial capacity, and the possible risks and rewards.
There are a lot of questions to ask the franchisor and do not move forward until you’re satisfied with the answers given. Don’t rush because it’s your time and money at stake!