Which Franchise Should I buy?
For many entrepreneurs and investors, a franchise presents the perfect opportunity to get into a profitable business. Franchises mean instant brand recognition, loyal customers, and the support of larger, established corporations. These are all things that can be attractive to someone wanting the benefits of their own business, but also to minimise their personal risk.
The first problem that anyone wanting to open their own franchise will encounter though, is where to invest when buying a franchise UK. This should give you some idea of the incredible number of franchises that are available, but how do you pick the right one? If you’ve found yourself asking which franchise should I buy, here are some other helpful questions to ask yourself that will help lead you the ultimate right answer.
1. What Do You Want?
Inc.com cites yourself as being the place to start in their in-depth guide to selecting the right franchise. You need to evaluate what you want out of a franchise. Do you want to be hands on and work long hours? Do you want minimal involvement? Do you want to be involved with something luxurious and special or unique to your community? Or have you just found the perfect spot to put something that everyone is already familiar with. Knowing what you want out of a franchise business will make it easier to evaluate franchisors and what they expect out of you.
2. What Is Your Financial Situation?
Loans for franchises might not be a walk in the park, so you need to carefully evaluate how much money you have and how much you are willing to put in. Just as there are many options for industries and companies, there are also many different price points for buying into a franchise.
3. What are your skills?
Picking an industry that you know nothing about might not be the wisest decision, especially if you want to be hands on. Your franchise shouldn’t be a learning opportunity, but an opportunity to use skills and expertise you already have in a new way.
4. What do you know about franchisors?
As the Wall Street Journal puts it their review of good practices for potential franchisees, “The franchise should offer a well-known brand name, a track record of proven performance and a good reputation among past and present franchisees. Make sure that you are going into business with a company that has a reputation you are comfortable with.
5. What are your long-term goals? Some franchises are more commonly bought and sold within a few years, while others can build a business that gets passed down through generations. Think about what you really want out of your investment and make sure that’s in line with how other franchisees have operated in the past.