Once you have decided to start your own business one option to look at is opening a franchise. A franchise is a type of license that a person is given which gives them access to a business’s proprietary knowledge, their brand and processes and allows the franchisee to sell the product or service using that business’s name.
The franchisee will usually pay the franchisor a start-up fee and licensing fees each year. Successful franchises include McDonald’s, 7-Eleven, Pizza Hut, KFC, Dunkin Donuts, Taco Bell and even some betting sites.
Here are a few tips to look out for when deciding which franchise option to choose.
A Good Track Record
The franchise should have a good track record, the franchise should have a successful history and the successful ones have usually been around for a very long time.
Look at their growth over time as well as what struggles or challenges they have had especially when they have expanded into other markets.
Is It Flexible?
Product flexibility is important especially if your product is being offered in different markets. Each country has a different demographic and audience and the product needs to be able to easily be adapted to new markets that have different needs.
It is important to do some research here to make sure that your product is flexible enough to be successful in your particular market.
You will also need to consider if your product or service will be able to adapt to the future. Will your product be able to adapt to new technologies in the future and well as an environment that is constantly changing. How your product adapts will help show you the growth potential of your product or service.
Good Brand Awareness
The positive aspect of starting a franchise is that it will have brand awareness from the beginning. Have a good brand image and a good reputation is extremely important to the success of your business.
Finding out if your franchise of choice has a good brand image is easy, the Internet is full of reviews and social media is an excellent platform to research this.
Is It Unique?
As mentioned you as the franchisee will need to pay costs to the franchisor in order to get your business going and to maintain it. These costs will have an effect on your business and you will need to look at your finances and factor in these extra costs and if it is feasible to go this route.
Because of all the competition out there, the franchise you choose must be unique and you must ask the question if they can continue the uniqueness as the market evolves and expands and this will be vital to the success of your business.
Maintain Good Relationships
There should also be a good relationship between you and the franchisor, which is focused on the success of both parties.
These partnerships are only successful if the franchisor listens to the franchisee and offers support to the whole network and mutual growth is encouraged.