The Things You Should Ask Yourself before Franchising

The key to being successful in any from of business, or anything you chose to do in life, is to educate yourself. Don’t be so close-minded that you feel like just because you are an entrepreneur that you don’t have to educate yourself. Education is key, and I hope to turn on that mental light bulb in your mind with these five questions you should ask yourself before franchising.

1. Do I really know what a franchise is? Time and time again, people have it in their mind that a franchise means owning a store of an already existing business and doing what you like with that store. That is not how franchising work. Franchising is simply buying the rights to a company’s business logo and model.

2. Is franchising right for me? When we all decided we wanted to become an entrepreneur, it was because we wanted to create something we could call our own. We wanted to create financial comfort for both our families and ourselves. You can do some of these things, but if you are someone that likes to do everything your way, franchising is not for you.

3. What’s my motivation? Just because you did not start the business does not mean that a franchise does not require the passion of wanting to run a business. You are making a huge mistake if you think running a franchise does not require any work.

4. Do I have enough money? To invest in franchise, the franchisee (you) must first pay an initial fee for the rights to the business, training, and the equipment required by that particular franchise. Thereafter, the franchisee will generally pay the franchise business owner an ongoing royalty payment, either on a monthly or quarterly basis. There are always cost overruns, permits, and delays. It helps to have more than enough start-up cash.

5. Do I know enough about the product or service? It is a most to understand the franchise model you are running. Let’s take coffee franchises for example. Many might think, what’s so hard about selling in America. Nothing is hard about selling coffee in the morning, but what will you do about the rest of the day, considering most Americans drink their coffee before 11 a.m.