So you've decided on joining a franchise business, instead of starting up your own business, or working for someone else? Well, before you go signing on the dotted line there are a few things you should carefully think about first. Here are 5 things to consider when joining a franchise business.
Firstly, will your chosen franchise business fit in with your lifestyle? Will your business be operated from home, on premises or on the road? What hours will your new venture require? Obviously the first few months/year will take considerably more of your time up. How important is your work/life balance? It's important you consider the effects it will have on your home life/family and relationships too.
Financing –
do you have sufficient funds to join the franchise and pay all the running costs you'll incur? Does the franchisor offer any financial help? You won't start making money right from the get go, and it may be more than a year or so before you start turning a profit. Therefore you need to make sure you have enough financial backing to cover all the costs of running your new franchise business.
Training and support –
Do you have the necessary business skills for the business? Will your new career require any specific qualifications or training? If so, does the franchisee offer this? If not, how long, and how much will it cost to undertake this? Some franchise businesses offer continued support and training, if they do not, then (depending on whether your business requires it) it will be down to you to gain the correct qualifications, legal requirements etc. You need to be prepared to keep up with any changes in business too.
Control –
how much control will you have over the direction of the franchise? You need to take into account restrictions that may be imposed, such as restrictions on goods and services, operation of the business, where you can/can't open up. Are you willing to comply with such terms? What happens if you breach agreements?
Length of contract/termination –
How long is the franchise agreement for? What happens at the end of your contract? Can you renew? What if you change your mind and want out? Will you lose all your investment? Can you sell your franchise business?
There are many things to consider when joining a franchise business. But if you have the money, abilities and desire to succeed, then at least you can confidently and happily put pen to paper, and sign on that dotted franchisee line!
