They often carry large brand recognition and specific branding controls. It is also true that some franchises offer little more than boilerplate information in a box. These types of opportunities take advantage of the uninformed are poorly trained aspiring entrepreneur. Consider these steps to evaluating franchise opportunity before you pass over your money:
There are certain regulatory agencies that govern the work of franchises. These agencies specifically focus most of their energy on the franchisor to be sure business is conducted to set standards. The International Franchise Association is an excellent non-governmental resource. Visit existing locations of the franchise. Do not only visit the locations that the franchisor offers. Seek out those who are not performing well. Find out why they are struggling.
Never take the franchisor’s word for fact. Do your own research. Many franchises that are successful today may be failures tomorrow. Trends move faster than ever. Trendy and popular franchise brands that once dominated shopping malls across the USA are now failing businesses. The market environment changed and the franchise model did not. Be specific and clear about what you are getting for your investment.
A franchise is often an excellent way for an aspiring entrepreneur to be his own boss. Do your homework early. Remember that franchises are primarily successful through lots of long hours and hard work and there is no substitute for that.
Which franchise brands inspire you?
Not all franchises are successful. Many franchise opportunities are excellent business opportunities and some are little more than scams. Knowing the difference could mean the birth or death of your dream to be your own boss. Having proven steps to evaluating franchise opportunity should help you separate fact from fiction and empower you to make an informed decision.
Successful franchises are those that have a proven system for success.
- Regulatory agencies are there to help.
- Study existing locations of the franchise.
- Never take the word of the franchisor.