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Things to Keep in Mind Regarding Franchise Ownership
Posted on November 1, 2010 by My Franchise Law

Buying a franchise business is a big decision, and one that needs careful research and planning before you commit yourself to a franchise ownership. From the type of business you want to own, to the location and financial arrangements, there are many factors to consider, some of which can mean the difference between a successful franchise ownership venture and an expensive folly.

Choose a franchise opportunity with a successful track record: When looking into where you should invest your money, it’s often best to stick with the tried and tested formula for success. By offering up a product or service that is already popular within the marketplace you will be more likely to boost sales more quickly and build a thriving business.

Focus on the training: Before you sign a contract, review how much training and assistance you will get from your franchisor, as you set up your business, as well as down the line. As a new business owner there are bound to be hiccups along the way, so by making sure that you have someone ready to lend a helping hand you will save the time and energy.

Have the right attitude, and make sure everyone is on board: Being a franchise owner often requires more hours than a full-time job, so the first key to success is choosing a franchise opportunity you find interesting and to which you are willing to dedicate substantial amounts of time to build. Secondly, make sure your family is supportive of your new business opportunity and able to withstand the pressures that come along with franchise ownership. Without family support, it will be much more difficult to work the long hours and devote enough time to nurture your franchise ownership venture into a success.

Meet happy and unhappy franchisees before you sign: When researching a franchise purchase, make sure you spend time speaking with other franchisees, to get a clear picture of what you will be getting into. Are they happy with ownership within the franchise organization? Do they feel they get enough support from the franchisor’s support staff? Are there any concerns or complaints you should know about? Don’t be afraid to ask questions—after all, this may be one of the biggest investments of your life.

External Resources

Small Business Administration

A government resource for finding information on planning, mentoring, and strategies for franchises and small businesses.
SBA Small Business Planner Business Gateway

Resources for every step in planning your business or non-profit, from getting your EIN to handling wages. Business Gateway

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