It takes a lot of work to find the best solution for the franchise and the potential franchisee.
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February 26, 2021
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The opinions of entrepreneurs' contributors are their own.
Buying the right franchise takes a lot of work. Fortunately, most franchisees offer prospective franchisees one-on-one advice, guidance, and even discovery days to ensure quality preparation and knowledge prior to entering into a franchise agreement. A discovery day is a great opportunity to evaluate a franchise before making the final decision to sign a franchise agreement. But what should a potential franchisee consider before starting a franchise negotiation or attending a Franchise Discovery Day?
1. Change your perception of buying a franchise and the obligation that comes with it.
Owning a franchise business can take as much time and commitment as starting a new business, even with the support structure of a corporate office. When launching, prepare for longer than expected hours, the need for more capital to grow, workflow disruptions, and other issues that may arise. Processes need to be streamlined, and this can take more time and effort than originally planned.
2. Prepare yourself for potential owners with knowledge and care.
Do the necessary due diligence and prepare accordingly. From entrepreneurs and other resources, every potential franchise owner needs to learn and prepare, especially in areas of business that are not one of the owner's strengths. While the owner should have a growth strategy that allows additional employees to manage different areas of the business, most new franchise businesses start out small and the owners take on multiple roles.
Related: What You Really Need To Consider When Considering A Franchise
3. Embrace the learning curve of owning a new franchise.
Every new business brings difficulties. For many franchisees, this may be the first time they have entered a particular industry. Even for the experienced entrepreneur, a new business brings new challenges. While owning a new franchise is sometimes uncomfortable, it is a learning process and this process only helps the entrepreneur, employees, franchisee, and franchisor. Ask questions and determine the franchisor's support structure, and ask other franchisees how corporate headquarters adhere to that structure.
4. Determine the flexibility and adaptability of the franchise to the changing economy.
Where can the franchise add value to the local market and the broader franchise system? Is there an option for the employees of the franchise company to work from anywhere? Is there a structure and culture that can accommodate future, unexpected events and help franchisees succeed? After the pandemic, a potential franchisee must consider future business interruption events and think about how the franchise can develop through such events.
Related: How Many Franchise Locations Should You Own?
5. Determine what a win looks like.
What does a profit look like in six months of possession? How does the growth look from year to year? What does it take to grow after a year, and if an exit is part of the strategy, what must happen to ensure a successful exit? Before embarking on a discovery day, determine what success looks like, then evaluate the franchisor's processes, growth model, and market strategies. From there, a potential franchisee can determine whether the franchisor's strategies and values align with the vision of franchise ownership.
6. Identify potential barriers the company is facing in the marketplace.
Obstacles will arise from competitors, business interruptions and unexpected obstacles. Expect adversity and be ready to play offensively if it happens. Having the right processes and being able to run them effectively will only move the business forward. Also, don't be afraid of failure. Mistakes will happen, and the best way to fail is to fail quickly, recover quickly and move on and adapt to the mistake.
7. Face fears and anticipate concerns when purchasing a franchise.
What does potential regret look like and how would it be overcome? Before embarking on a Discovery Day, make a detailed list and see the company dispel those fears. Other franchisees are also a great resource, and most will have similar experiences. Make sure that fears and doubts are overcome after the discovery day. If not, check out other options or franchises.
Owning a franchise business is challenging but also rewarding. Various franchise models, e.g. B. fully present, half absent and others, can provide the franchisee with a better work-life balance. Perhaps there are other aspects of the business that allow great flexibility, freedom, or the ability to pursue true passions and jobs that are important to the franchisee. But no matter what franchise it is, enjoy the benefits a franchisee can bring.
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