How to Pick the Right Franchise for You

People with the entrepreneurial spirit may find franchise ownership the right fit for their abilities and lifestyle. American Express Open Forum lists some introspection questions a would-be franchisee should ask before investing his or her money into a franchise business.  Does the business match my interest and skills?  Will I enjoy running the business?  Does the franchise have a good reputation among the franchisees and customers?  Is it supportive of franchisees?  Do I have a good location for such business?  Is the company or its brands popular in the area?  Can I afford the franchise and royalty fees?  Do you have the  initial capital requirements?  You should ask these and more questions before you commit to buying a franchise.

1. Will this be a business I enjoy running? You need to find a business that matches your interests and motivates you to do well. You may spend most of your waking hours at your business (in the beginning, at least), so make sure it’s something you love doing.

2. Does the franchise have a good reputation? Be sure the company is in good standing within your community. Would you, as a customer, purchase a product or service from this brand?

3. Are other owners within the franchise satisfied with the company? Take some time to speak with other franchisees. Are they happy with the overall culture of the company? Consider connecting with people who are no longer with the company to get their viewpoints.

4. Do I have a satisfactory location to open the franchise? Location. Does the franchisor require certain specifications such as traffic flow or accessibility?

5. Is the area familiar with this brand or will I need to build the business from the ground up?

6. What is the cost structure for buying into the franchise? Buying into a franchise can be expensive. You need to be prepared to give a portion of your profits to the parent company. Just be sure you know how much.

7. Will the franchise provide assistance in business dealings? Will they micromanage my business? Many franchises will offer their owners opportunity for assistance. Franchises often allocate or match funds for marketing, provide marketing materials and offer business assistance.

Do you want a hands-on company or do you want to run this as your own business?

8. Will I have a say in my franchise’s inventory? Will you be able to buy products you deem a fit for your franchise or will you need to stick to the products specified by the company.

9. Are there employee training opportunities? Does the company offer employee training or must you do it yourself.

10. Will I be satisfied with my work-life balance? …

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