Researching a Franchise Opportunity – do your due dilligence
Recently I attended a speaking event and one of the topics addressed the issues one can encounter when starting a franchise. Afterwards, talking to people, I was astonished that most of the franchise takers who experienced problems, did not do their due diligence when starting with “their” business.
Why starting Franchise?
If you have ever wanted to open up your own store but simply don’t have the talent or the patience to do so, one of the things that you might consider is opening up a franchise of a company near the area you’re living. Chances are that you have been thinking about the lack of businesses or the needs of the consumer in your area that are not fulfilled right now, which is one reason that makes owning a franchise such a tempting opportunity. Although there are plenty of risks associated with owning a franchise, if you are not accustomed to owning your own (large) store then there may be some questions, albeit a lot of questions, that you’ll need help with in the beginning. In addition, if you are new to the whole franchise idea then some of your questions might need immediate attention. But there are plenty of places where you can go in order to find out more about a specific franchise opportunity.
An Independent Franchise
The first place that you could possibly direct your questions to is another franchise owner. Considering the fact that many franchise owners are not usually involved with the day-to-day operation of the franchise business itself, franchise owners may actually not mind speaking to you. These are the people who are the most experienced with opening up their own franchises and can easily guide you and inform you with the correct information so your decisions will be easier. Some independent franchise owners may even tell you about whether or not owning this particular franchise is a profitable venture or not.
Another place to go to if you want to know more about franchise opportunity is the Entrepreneur magazine. The Entrepreneur magazine has both a print publication and an online version of their magazine that you can purchase. In addition, their website is filled with all sorts of good information about how to get started with franchises, the facts about how much money it takes to own a specific franchise you may be interested in, as well as the qualities and considerations that a prospective future franchise owner should make. In addition, though, the Entrepreneur resources will be able to give you the lowdown of virtually all the franchise opportunities. For your reference: Entrepreneur list.
On the other hand another valuable resource that you may have at your disposal is a franchise broker. Franchise brokers are certain individuals that usually get paid a certain percentage of the startup fees that you’ll have to pay, but they can be a valuable resource in the fact that they can give you all the secrets about a certain company and what many franchise owners’ opinions might be of them!
All in all, there are plenty of places to go to in order to thoroughly research a franchise opportunity. Even though the vast majority I talked to at that event did not do their homework, which is a pity, as it could avoid a later disappointment in terms of revenue or job expectation.
Have a conscious day!