Let’s face it, many of the good opportunities to make money from franchising have been used a long time ago. But do you still want a franchise? What and where are you looking? In my opinion, what is new, what is fashionable, what is new and better. It’s fashionable, does it have growth potential, who’s behind it?
First, you need to know what you’re interested in. Remember that you will spend more time at your business than at home. So it’s better to be loved and accessible. Don’t put your fortune, home, family at risk for the franchise. Don’t roll the dice or risk everything. Make sure you keep falling backwards.
Once you’ve chosen a franchise, get to work. Start with franchisees who have stores for sale. This is done for two reasons: first, if you buy an existing store, you can get a better deal than a new one. You also want to know why they go outside. The main reason is that they don’t usually do it. They will tell you about all the problems of the franchise, some real and some not. The more franchisees you sell, the better you will have questions when you decide to turn to this franchise to open a new location.
As you complete the information-gathering quest, focus on the key people who run the franchise. How long have the CEO, President and Chief Operating Officer worked for the company? Were there stable sales upstairs? If so, that’s a bad sign. Has the company moved to different states several times? Usually it is a sign of a problem with this condition, also bad.
Support is a huge and important issue. What type of training do you need and for how long? Will you also be helped to open a store? Do they have a good marketing system and do they spend enough money on marketing concepts? Strong support or lack thereof says a lot about business.
Is the constant growth of new stores 10% or is it not? Any good concept should have positive growth. If everyone sells their stores, that’s a bad sign, too.
What about fees? How much do these people take, high or low? What is your membership and is it worth it? These are just a few ideas to look out for when looking for a franchise.