Article Contributed by Ann Shirley
If you’re an aspiring business owner looking to get your foot in the door then you may want to consider becoming a franchise owner. Becoming a franchise owner is a great way to gain valuable experience in the business world. You will be able to build connections with other franchise owners and people who work for the company. While you will be free to run your own franchise, you can lean on the support of others in the business to help you with marketing and advertising and other modes of assistance that will allow your franchise to grow and prosper. If you’re interested in becoming a franchise owner you should carefully consider these four questions.
- What kind of franchise should you invest in? There are countless options available from food to retail and even education. Food franchises can be risky. There are many options available for people to purchase water ice franchises. However, these franchises are usually only open for a season. During the downtimes you may find yourself strapped for cash. In addition, unpredictable factors such as the weather may affect sales. A safer option is to own an educational tutoring franchise. There will always be children in need of tutoring services, and even in the summer you’ll have students in need of SAT prep.
- Does the franchise have a good reputation? One of the only drawbacks to owning a franchise is that you’re not a completely independent business owner. This can be very beneficial for thriving businesses. However, if a business is struggling you may want to avoid investing in one of its franchises. If the business folds you could lose your franchise and be out of money. For example, fitness franchise Curves has been in a lot of hot water recently for its closing. Look for a franchise that has a proven track record of success, less competition, and is innovative and willing to try new ideas or take advice from their franchise owners. As a franchise owner you may not have total authority over the company, but you should still have your concerns addressed and work with a company that is willing to listen to your ideas.
- What kind of support will your franchisor offer? It is important to choose a franchise that offers you support. While you will be running most operations yourself, you’ll want a franchisor that can help you with marketing and advertising and offer you extensive training and support as needed. Owning a franchise is a great way to get started in the world of business especially for aspiring entrepreneurs, but it is crucial for franchise owners to have outside help and assistance to allow them to learn and grow within the business.
- How much will it cost to own and operate the franchise? Discussing the cost of owning and operating your own franchise can be tricky. There are many important factors to consider including a franchise fee, legal fees, build-out costs, inventory, and cost of supplies. Talk with your franchisor ahead of time to find out which costs they will cover and which ones you will be accountable for. Also, find out if there are any annual or reoccurring fees that you must pay. It’s recommended that you make a list of any questions you may have regarding finances ahead of time.
You may also want to ask questions about taxes. Some franchises may be tax deductible which would allow you to get some of the money you invest back at a later time.
Are you a franchise owner or are you considering becoming one? What are or were your biggest concerns or questions regarding owning a franchise? Is there anything you wish you would’ve asked ahead of time? Leave a comment letting us know!
About the Author
Ann Shirley is a freelance writer from New York. As a franchise owner for Hunting Learning Center, she enjoys writing articles about business and entrepreneurship for others to benefit from.