Buying a franchise isn’t just about choosing a profitable system, although that is crucial. It is also about finding a business that’s just the right fit for you. If you’ve done the brand homework, check you’ve taken all these steps to make yourself franchise-ready.
First up, let’s check in with the family.
Buying a franchise is a significant decision, no matter the investment. Working for yourself will mean working hard – many franchisees say they have never put in more effort or more hours than they do as their own boss – at least at the beginning.
So you will need to have the backing of friends and family. Are they on board? Will they understand the commitment you will need to put in to make this business a success?
Of course, you’ll have done all the research and spoken to former and existing franchisees to find out just what a day in the franchise is really like, and how supportive the franchisor is.
Do you know a franchisee’s obligations?
If you have a clear idea of what’s involved, although there will be surprises along the way, you are best prepared for the adventure ahead. And you can give your friends and family the confidence that you are primed and ready for the challenge.
Are you all set to buy a franchise? Are you confident you understand the ins and outs of the franchise relationship, your obligations, the franchisor’s responsibilities? Misunderstanding is at the heart of many franchise disputes so it’s wise to be thorough in your research and keep asking the franchisor and franchisees questions.
Buying into a franchise is all about the support, branding and expertise on hand to help you in business. And that all comes with rules and regulations. So you’ll need to be comfortable with following the tried-and-tested model.
Of course you’ll want to ensure you have the commitment and stamina to do justice to the business opportunity. And it does help to know how you will get out of the business. While a five-year term may not seem long, it can feel like a lifetime if you’ve picked the wrong franchise. If you’re comfortable with the commitment and have an exit strategy in mind, that’s a great sign you’re ready to buy a franchise.
The legal and financial details
Once you are sure of your commmitment to the brand, it is wise to seek expert advice from a lawyer and a franchise-friendly accountant. While such expertise does cost, these professionals can assess whether a franchise aligns with your financial and legal goals.
It’s particularly important if you are a first time business owner. Lawyers and accountants well-versed in the franchising sector can alert you to any warning signs in the franchise.
Your accountant can also assess whether the business will meet any repayments for bank loans, premises or vehicle leases and will suit your budget. Once all your support team is on board – and let’s include the lawyer, accountant and bank in this team – you’re on the right track to making the franchise dream a reality.