As a potential franchisee, what should you be looking for in a franchisor?
You need to be really sure about your investment. You are going to give up your job, with associated benefits, and pay to join a new business you know nothing about and where you have to closely follow a set of rules and a blueprint you don’t control.
One of the first considerations is the return on your investment, but don’t forget to take into account the fees you will have to pay to the franchisor. The fee structure and the projected return should be clearly explained to you once you approach the franchisor.
The bigger the franchise, generally the higher the upfront fees you would expect to pay.
You are looking for a successful model. If it is a well-known franchise, you will be more confident, but remember that returns may be lower, and fees higher. During the negotiations ask to see evidence of successful operators.
Choose a business that interests you and that you will enjoy working in. If you love travel and have an encyclopaedic knowledge of our planet, then you might look at becoming involved in the travel industry. If you love cooking, get involved in the food industry. If cars are your passion, look at a car dealership.
Check there is a robust training, communications and support system. You want ongoing training for new staff.
This is largely what you are paying for, the expertise, the tried and tested processes. You need to be sure their system and processes are clearly explained in writing and templates or documents are available to you.
The franchisor should have a website and support staff to help you with training and launch issues, and a robust IT system that can support franchisees.
If the franchise is well established they should be able to give examples of franchises who have been with them for many years .You want to feel sure that they will offer you strong leadership, effective management and excellent communications.
As a potential franchisor, is your business suitable to be a franchise? Continue reading The Franchise Model – Choosing a Suitable Franchise Partner