Building a business is hard. Growing a brand while managing day-to-day operations, keeping it profitable and still getting enough sleep? That’s nearly impossible for us mortals. Some businesses, like many consumer products, now come in something like a “plug and play” solution: a franchise.
Building a business is hard. Growing a brand while managing day-to-day operations, keeping it profitable and still getting enough sleep? That’s nearly impossible for us mortals. So some businesses, like many consumer products, now come in something like a “plug and play” solution: a franchise.
Is franchising for you?
Buying into a franchise holds a lot less risk than setting up your own business and brand. Having a recognizable brand, a ready-made business plan, as well as training? Can help you capitalize on market demand without spending long years (and a lot of money) establishing your business and brand.
On the other hand, if you thrive on seeing your name in lights, making ALL the business decisions and remaining completely independent in your work? Franchising is not for you, and you can probably skip the rest of this post.
Money Talks
Before we discuss the criteria for choosing a franchise to buy into, let’s talk about the money. It’s what we’re all here for, right? Doing business and making money. And it’s not just about the cost of the franchise before it becomes profitable.
Franchise costs vary greatly. From just a few thousand dollars to millions in initial investment and ongoing operational costs, depending on the industry and on how complete the business “package” is. And of course, how big and strong the brand name is.
One in a thousand
Thousands of franchises are courting potential franchisees across industries and geographic locations. But how can you choose the right one? Do a lot of research. Knowledge is power.
In your quest to find the one company to want to be part of, there are a lot of questions you need to ask yourself. The first one, in my opinion, is: “What do I WANT to do?”
Joining a venture you believe in, or selling a product you enjoy marketing is much better than working in a business that goes against who you are. For example, if you’re allergic to dogs, then mobile pet grooming services might not be the perfect field for you to join. If you’re vegan, odds are you will not be opening a McDonald’s in your town.
The Good, the Bad and the Brand Name
Buying into a franchise is no simple decision, and as I pointed out above - there’s a lot of number crunching and many questions to ask. Is there demand in your area for the service you want to offer? Are there other brands competing for the same target audience? How much support and training does the franchise offer?
Do your due diligence in research, or you’ll end up paying for it later. In addition to in-depth Googling of the brand and corporation reviews, you want to be speaking to other franchisees working with the company. Don’t forget to check if the franchise is involved in any lawsuits or has been reporting financial trouble.
The list is long, but you can start your with the questions offered by IFA, the International Franchise Association.
In 2016 the franchise categories that showed most growth are fast food, cleaning services, hair styling and fitness centers. This trend is going to continue is 2017, but your choice of brand should not be based just on growth percentage and popularity. Your location, available capital and the answers to the questions previously mentioned should help steer you in the right direction.
But which brands are most likely to shine in the most growing categories?
10 Hot Picks for 2017
Jimmy John’s Gourmet Sandwiches
Subway
Anytime Fitness
Jazzercise
Supercuts
Sport Clips
Servpro
Jan-Pro
Right at Home
Hampton by Hilton
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