Franchises provide a multitude of enterprise opportunities. There are several hundred service orientated franchise businesses, covering nearly every consumer niche out there, and there are new ones springing up daily.
Choosing the right one is critical to the overall success of the franchisee. Select one which is struggling, or is unstable and problems follow. On the other hand, pick one which is on the rise, that's got proven systems and plans in place, and you can easily become a success.
This step, more so than others, is one that potential franchisees must undertake on his or her own. Franchise consultants can help track down information on some of these topics, but making the decision of which franchise to choose is ultimately the choice of the franchisee. No matter the particular type of franchise being considered though, a sound evaluation can be made by asking the following questions...
What is the vision of the company?
What is the age of the company?
How many years did it operate for as an independent business prior to offering itself as a franchise business?
What is the brand perception of the company?
What kind of franchises do they offer?
How many franchisees are there in the system?
Of the existing franchises, how many own more than one unit?
How many franchisees have left the system? If so, why?
What is the cost of the franchise and what does it include?
Is there a royalty fee? If so, ho much is it??
What is the duration of the franchise agreement?
Who is in charge of the franchise business? Are there any legal cases pending against them?
What level of training is on offer? What is the on-going support?
Which regions are they operating in? Does it provide protected territory?
How are material sourced? Do franchisees have the ability to choose their own suppliers?
Does the franchisor offer financial assistance?
Does the franchisor provide real estate support?
How many employees are needed?
Is assistance offered in the recruitment of employees?
How proven is the marketing plan?
Choosing the right one is critical to the overall success of the franchisee. Select one which is struggling, or is unstable and problems follow. On the other hand, pick one which is on the rise, that's got proven systems and plans in place, and you can easily become a success.
This step, more so than others, is one that potential franchisees must undertake on his or her own. Franchise consultants can help track down information on some of these topics, but making the decision of which franchise to choose is ultimately the choice of the franchisee. No matter the particular type of franchise being considered though, a sound evaluation can be made by asking the following questions...
What is the vision of the company?
What is the age of the company?
How many years did it operate for as an independent business prior to offering itself as a franchise business?
What is the brand perception of the company?
What kind of franchises do they offer?
How many franchisees are there in the system?
Of the existing franchises, how many own more than one unit?
How many franchisees have left the system? If so, why?
What is the cost of the franchise and what does it include?
Is there a royalty fee? If so, ho much is it??
What is the duration of the franchise agreement?
Who is in charge of the franchise business? Are there any legal cases pending against them?
What level of training is on offer? What is the on-going support?
Which regions are they operating in? Does it provide protected territory?
How are material sourced? Do franchisees have the ability to choose their own suppliers?
Does the franchisor offer financial assistance?
Does the franchisor provide real estate support?
How many employees are needed?
Is assistance offered in the recruitment of employees?
How proven is the marketing plan?
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1 comment:
Nice post about franchise opportunities
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