Which Franchise is Right For You? Follow These Steps
When a couple I know, Mark and Andrea, decided to give franchising a try, they knew a few things for sure. First, they wanted something that made use of their experience working for Fortune 500 companies. They wanted something that wasn’t a fad. They didn’t want to make too large of an initial investment. And, finally, they wanted a company that took a unique approach in its marketplace -- something that offered an established product in a new, more efficient way.
They spent months researching options, then zeroed in on a mobile flooring concept that ticked all their boxes. Before pulling the trigger, however, they spoke with more than 20 different franchisees to find out what it was really like being a part of the company. Only then did they buy in -- and not surprisingly, their business succeeded.
Related: 6 Reasons Why Startups Are Riskier Than Franchise Businesses
As someone who deals with franchises all the time, I think they did everything right. But I’m surprised at how many people do it wrong.
I appreciate the challenges. It’s easy to be paralyzed by choice or jump in without fully understanding what you’re getting. That’s why, once you’ve determined that franchising is for you, you should start by laying out the three most important facts: the amount of capital you have available to invest, your risk tolerance, and the amount of leverage (credit
