Pick a Location
The right location is essential to the success of your franchise. It is recommended that you look to utilize the franchisor to help find and negotiate a location since they have the experience and also have a vested interest in your success. The experience a franchisor can also bring commercial brokers to your aid.
Next, you will want to analyze the locations demographics, have an understanding of the area, know traffic patterns and even future building plans to help assist you in your decision. A franchisor can also assist with negotiations to help you get a lease that makes you comfortable.
Finally, take into consideration the details of the lease for your desired location
The right location is essential to the success of your franchise.
Pick an Industry
You will first want to consider an industry that fits your personality and skill set. Look to Franchise Business Directories to find thousands of franchises for sale, such directories are a good starting point for researching potential franchises.
Searching the directory will give you basic information about different franchise agreements, including operating territory, the investment required, training and support provided, and the term of the agreement. You can also use the directory to find professional advisers for help.
Determine Capital Investment
Before you buy a franchise, you will need to make sure you can afford it. It’s recommended that you should have at least 6 months of savings set aside for emergency funds that can cover contingencies.
It’s vital that you have a practical and feasible business plan so that you don’t have to face any unrealistic illusions and surprises along the way. Don’t just look at the cash flow, but take a closer look at the outgoings as well; the former can easily be presented as profitable. Be sure to take all expenses into consideration such as electricity, rent, and taxes into account.
Choose a type of franchise
When choosing the type of franchise you want to pursue, consider your own skillset and then break that down into a product or service.
A business format franchise in which the whole business concept is licensed and standardized, including the name, appearance, and method of carrying on the business (i.e. a fast food restaurant)
A product and trade name franchise in which the franchise is:
- licensed to sell products manufactured by the franchisor (e.g. new car dealership)
- licensed to manufacture and sell the franchisor’s products (e.g. soft drink bottling)