Franchising is one of the most viable ways for small business owners to get started. Franchising is popular and profitable because it takes care of a lot of the groundwork and heavy lifting for a business owner who might not have the time or money to worry about getting into business independently. But it’s also popular because it tends to work.
You can buy the latest franchise books, see different franchise opportunities property management, join franchise associations and immerse yourself in franchise blogs – hoping one day something will click and be revealed. Read and learn about the five easy ways to identify a strong franchise opportunity.
Look For A Strong Brand Presence
Competition is essential when selecting a franchise opportunity. If you’re considering buying into a franchise, you’ll want to consider looking into the market and finding out who your biggest competitors are and asking yourself if their success means that there’s room for you to grow.
If the franchise opportunity you’re considering doesn’t seem to have many competitors in the same area, you might wonder what the term “strong brand presence” means. It’s pretty simple: a strong brand presence is how recognizable a company is to consumers. It also includes things like consumer sentiment and how famous your brand is instead of other similar brands.
You can find out how strong your potential franchise’s brand presence has by doing a quick survey of friends and family. Ask them about their experience with that particular brand, and see if they have an opinion on the subject!
Experience And Support From Franchisor
You want to be able to reach out for help with any questions or concerns and have confidence that your calls get answered promptly and professionally so you can get back to work as quickly as possible.
Another thing to consider is the experience of the franchisor. It would help if you asked these questions:
- How long has this person been in business?
- What companies have they owned or operated previously?
- Do they have a track record of success or failure?
You want someone with experience and knowledge when it comes time for negotiations.
Location Of The Franchise
If you’re looking to invest in a franchise, you’ve probably heard that the location of a business is critical. So it’s no surprise that one of the first things you’ll want to consider when looking into an opportunity is its location.
- Is it right off a major highway?
- Does it have ample parking?
- Is it easily accessible?
These are all questions to ask before signing on the dotted line. The right location can mean the difference between success and failure for any business. If you’re going to invest in a franchise, you’ll want to ensure that it’s located in a spot with high visibility and foot traffic.
Ensure Ample Room For Growth
Many prospective franchisee candidates look at a franchise’s current size and growth rate to gauge the potential for their own business. It’s essential to ensure that the franchise’s footprint is large enough to accommodate the possibility of future growth. You want to investigate whether the franchise has room to expand and ensure that it has already proven its stability and its ability to be profitable.
Ensure The Contract Is Simple
A simple and easy-to-understand contract signifies that the franchiser is experienced, organized, and confident in what they are offering. Never sign anything before taking it to your lawyer first, but keep an eye out for uncluttered language, a clear description of what you’re getting into, and how much it will cost you.
The legal jargon shouldn’t be so complex that it could confuse the average person. If you have trouble understanding the contract, who else will?
Finding out the right franchise is like a relationship. At the end of it, you want to be happy and satisfied. You want to know you’ve been good to your partner, that they have been good to you, and at the end of it all, you’ll have a long history together filled with ups and downs, but ultimately a lot of memories. Identifying the right franchise for someone takes time and effort – don’t go into it blindly. Listen closely. Ask questions. Investigate all aspects of the franchise, both past and present. If something doesn’t sound right about the franchise opportunity offered to you, ask yourself if it does sound right for you. Then do your due diligence and keep looking.