By Rick Villalpando
In today’s business marketplace, franchising is an attractive option for entrepreneurs who are seeking opportunities to go into business for themselves, to expand their earning potential and/or to begin a new career. A prospective franchisee should seek out a system based on the strength of its concept and its credibility.
There are a number of important aspects of a franchise system you will need to investigate if you are hoping to make the perfect purchase decision and create a positive, lasting business partnership with your franchisor. The following are some helpful tips, based on actual franchise development experiences, to achieve both of these aims.
Making the right investment
The first question you need to ask yourself, as a potential franchisee, is what type of business do you see yourself in? The franchise concept you select should be one you are passionate about and can envision yourself being immersed in every day for the long term.
To determine which type of business is best for you, ask yourself what type of industry you would enjoy being part of, what specific products and/or services you are passionate about and what types of people you like dealing with. After all, the term of a franchise agreement with a franchisor will often be for 10 years, with the option to renew for an additional 10 years. You will therefore stand the best chance of success if you choose a business you can be truly enthusiastic about building.
In turn, your passion will permeate every facet of the business and help create a positive workplace culture. Your enthusiasm will make it easier for everyone involved to implement the franchisor’s systems and processes, allowing the franchise to operate at a high level of excellence and yield a strong return on investment (ROI) for you.
Further, most franchise opportunities available in today’s market are ‘active investments.’ This means the business requires the franchisee’s on-site presence on a full-time basis, every day. Such franchises include restaurants.
If you are not able to devote your full time and energy to your franchise business, you should re-evaluate your options as a prospective franchisee. It is imperative for you to choose a business that mirrors the level of involvement you are prepared to provide.
It is also important to identify a particular franchise system’s points of differentiation within its industry, i.e. what makes it stand out from its competitors and what makes its product and/or service offering unique. It is in your best interest to invest in a business that brings something distinctive to its industry and stands out from its competitors, as these factors will help you elevate the presence of your business within your community and attract customers.