Let’s face it, many of the good franchise money-making opportunities were taken advantage of a long time ago. But do you still want a franchise? What and where do you look? In my opinion, what’s new, what’s hot, what’s the latest and greatest. Is it a fad, does it have the capacity to grow, who is behind it?
First you need to find what interests you. Remember that you will spend more time running your own business than at home. So it better be something you like and affordable. Do not risk the fortune of your life, your home, your family for a franchise. Don’t roll the dice and risk everything. Be sure to leave yourself in a setback position.
Once you select a franchise, do your homework. Start with the franchisees that have stores for sale. This is done for two reasons: First, you may get a better deal buying an existing store than a new one. Also, you want to know why you are dating. The number one reason is that they usually aren’t making it. They will tell you all the problems with the franchise, some true, some not. The more franchisees you talk to who are selling, the better questions you will develop if you decide to approach this franchise to do a new location.
When you are done with your data collection quest, focus on the main people running this franchise. How long have the CEO, President, and COO been with this company? Has there been a constant turnover at the top? If so, it’s not a good sign. Has the company moved multiple times to different states? Usually a sign of trouble with that state, not a good one either.
Support is a huge and important topic. What kind of training will you need and for how long? Do you also get help when you open the store? Do they have a good marketing system in place and are they funneling enough money into marketing the concept? Strong support or lack thereof tells you a lot about a company.
Is the growth of new stores a constant 10% or does it not exist? Every good concept must have some part of positive growth. If everyone is selling their stores, that’s not a good sign either.
What about the fees? How much do these people charge, is it high or is it low? What is your purchase and does it make sense? These are just a few ideas of what to look for in your search for a franchise. As you can see, don’t make an uninformed decision. Do your homework and go into this with a good knowledge base. good luck