Joining the franchise world is a big decision and one you definitely should not take lightly. There is a lot to consider. Is the franchise business the best fit for you? And which type of franchise will be the best investment? These are just some of the questions that you will need to consider.
Check out this primer for how to determine the best franchise opportunities for you:
Identify the pros and cons
If you are a fan of making pro and con lists, then this is the perfect time to make one. Franchising is not for everyone so you should be clear on what the pros and cons of taking this particular route to becoming a business owner.
Some of the pros are that you are given an already established product or service to sell allowing you to capitalize on the franchisor’s brand name recognition and that you are offered a support structure and training to help you get your franchise unit up and running.
Typically the franchisor will help you with financing and constructing your store as well as with the grand opening and ongoing management support. As a beginner with little experience, being a franchise owner is like being a business owner with training wheels on. You have a support structure to help get a sure footing in the business.
One of the cons is that you do not have complete creative control. You have to adhere to all the regulations agreed upon in the franchisee agreement and you can’t just make whatever changes you want. Often times you will have to buy your supplies directly from the franchisor whether or not you think you can get a better deal somewhere else.
When considering the best franchise opportunities, you need to also think about the financial burden. Besides the initial franchise fee to get started, you will also have to pay royalties and advertising fees. If you find the franchise agreement too constricting you might want to start your own business instead. Also if you have a unique product or service that you’d like to explore then joining an existing franchise will not work for you. Being your own business owner will offer you the freedom you will need to see your vision realized.
Know the right questions to ask
Once you know you definitely want to get into the franchise business, you will need to decide which franchise program to join. There are so many out there offering both products and services so you really need to have a heart to heart with yourself about what would be the best fit for you. Fast food franchises are a very popular type of franchise. You also should interview a bunch of franchisors and their franchisees to find out more about their particular type of franchise.
Here are some important questions to investigate:
- Are there certain products, services, brands that I am passionate about? Are there certain values that are important for potential franchisor to have?
- Is there a viable market for this?
- How much are initial start-up costs? Is this doable for me?
- How long does it take to see a profit? Do I have enough money to keep everything afloat till then?
- Does the franchisor offer adequate training and ongoing support? What do they offer for advertising and marketing?
- Where will my franchise unit be located? Will I get rights to certain territory?
- Are there any bankruptcies or legal problems in the franchisor’s present or past?
- Are the franchisor’s trademarks federally registered?
- Does the franchisor compete with its franchisees in the same market?
- What are your financing options?
- If they offer training, where will it take place and for how long? Will it cost additional money?
- Who leads the training and what are their qualifications?
This is a big step you are considering taking, but it can be a smart move when you take it wisely. Being honest with yourself and thoroughly doing your research are the keys to making a good decision.
Look very closely at your finances
Startup costs for a franchise can run the gamut from only a couple of thousand dollars to millions of dollars so you need to look realistically at what your investment budget should be. Experts suggest that you factor in what your income is from other sources, what you expect your return to be from the franchise and your general lifestyle habits. If you tend to have expensive tastes, then you will probably not want to enter into a venture into a business dealing where most of your money is put on the line.
Make a list of what you are looking for in a brand
When you choose to buy a franchise instead of opening up your own business, you are signing up for that brand so it is crucial that it is one that you believe in strongly. Top qualities you should be looking for include an established support structure that can help you develop your franchise, a group of knowledgeable and skilled experts who are available to advise you every step of the way and continual training opportunities to give you the best opportunity to succeed.
Choosing the Right Franchise for You
There are a lot of good franchise opportunities out there, but remember that not every opportunity is going to be the right fit for everybody. If you are interested in restaurant franchises and love barbecue, then Chaps Pit Beef might a great investment for you.
Barbecue is a popular staple in the U.S. and will never go out of style. Also with BBQ joints, you will get to be more creative in planning your menu and don’t have to stick to cookie cutter dishes. That is the great thing about barbecue. There are so many nuances when it comes to cooking the meat just right and adding the right blend of sauces to get the mouthwatering result you were hoping for. It takes a lot of skill and is a true art form so you will never feel like you are a factory and not a true restaurant.
When lookoing at the best franchise opportunities, consider Chaps Pit Beef. They are one of the top franchise to buy. The Creager family at Chaps has perfected the Baltimore style barbecue called pit beef and have attracted a loyal following that will help your franchise unit do really well. Learn more by contacting Chaps Pit Beef today.