Do you want to explore franchise ownership but don’t know where to begin? It’s understandable! With list after list of hundreds of franchises in nearly every industry, the options can be overwhelming. How can you reasonably and efficiently narrow down the choices to a select few, and ultimately choose the right franchise? We take the process from daunting to doable with three questions to start bringing your options into focus.
- What Industry or Product/Service Interests You?
From local to international and travel and home-based, surely there is a franchise that fits one of your interests. And within in each category are subcategories to further refine the list. Also ask yourself, would you like to work with consumers or prefer a business-to-business franchise?
You can review a list of the Industries and Categories from the International Franchise Association that present all of the possibilities.
- What’s Your Budget?
Knowing the amount of money you have to invest in a franchise can help to narrow down options for you. The cost of opening a franchise varies as widely as the categories – with a range of less than $10,000 for home-based franchises to more than $5 million at the high end for hotel franchises. Costs to consider: A one-time franchise fee, which includes rights to use the franchisor’s brand, systems, and training and support, can be as low as $10,000 or well over $100,000 depending on the type of franchise. Typically, royalty payments are also assessed, which range from 4 to 8 percent of gross revenues.
- What Are Your Priorities and Other “Must Haves”?
While industry and budget are two big considerations, there are other priorities that will help pinpoint your focus. For example, do you want a large, established brand or a growing, up-and-coming brand? Is your location specific or can you consider other areas? If training and ongoing support, flexibility and good communication with corporate are important to you, place these on your list of “must-haves.”
Researching the Top Contenders
Once you have your short list, the next phase of this process is to dig into the details and start conversations with franchisors. Learn as much about the product or service as possible (quality, customer feedback, issues/concerns, competition). You’ll also receive a Franchise Disclosure Document (FDD), which provides insights into financial performance, the number of franchises opened in the last three years, expected costs of investing, and much more. The information in the FDD provides a basis for comparing start-up costs, ongoing fees and potential revenue of the franchises.
Finally, go to the source and talk to current and former franchisees. Ask them the really hard questions about what it takes – how many hours did they have to work initially, are they happy with the training and support, why did they choose this franchise over others, how long did it take them to be profitable? Most are more than happy to give advice and their insight is invaluable as they reflect on having once been in your same position and now being where you want to be in the future.
Finding “The One…”
The time and effort invested in researching your franchise options will be well worth it and the one franchise that is right for you will reveal itself. May your search be fruitful and your franchise experience fulfilling!
…And Only – BirthdayPak!
Since you’re here, why not take a look at BirthdayPak? BirthdayPak is a nationally recognized direct mail and digital marketing platform that connects local, upscale businesses with their best customers. If you’re a sales and marketing professional seeking an exciting business opportunity with a growing national brand and work-life balance, BirthdayPak may be the one for you. In terms of costs, the initial franchise fee ranges from $17,500-$44,500 (depending on market size) and BirthdayPak is royalty fee free. Learn more by taking the first step or calling 1-888-206-0083.