A franchise is a far safer option than starting a business from scratch, especially in the current economic climate, not to mention you’ll get training from the franchisor and be able to grow a business that’s already established
A franchise resale can be a great opportunity for somebody who wants to own their own business. A franchise is a far safer option than starting a business from scratch. Not only is it better in the current economic climate, but a franchise resale also means you’ll get training from the franchisor and be able to grow a business that’s already established.
Here are my eight steps to finding the perfect franchise resale:
1. Define your goals and evaluate yourself
You should have a good idea of what you want to achieve by owning a business.
What hours would you like to work? What sort of things are you good at? What can you afford to invest? Asking yourself these questions will enable you to find options that are a good match.
2. Consider financing
How much money is available to you? You’ll need to figure out how to finance your franchise if you don’t already have a bundle of cash to spare.
3. Look for options that are recession resistant
Research businesses that will do well, regardless of the state of the economy. What do people always need?
Avoid industry segments that may not be recession-resistant, so you can select something that will work for you.
4. Identify franchise resales opportunities
At this stage, you should look at individual franchise resales and create a shortlist - we can help you identify businesses that suit your needs, such as ones that are available in your desired location.
Then we can look at the businesses that match your goals as defined in step one, which will help you to make your decision.
5. Research the franchise
Now you have an idea of a few businesses you like, it’s time to research the franchise and find out more about the franchisor. You should consider the business’ track record, as well as its fees and legal documents. Does it still meet your desired criteria?
6. Pay the franchisor a visit
If everything is going smoothly so far, it’s time for you to visit the franchisor. You can get your final questions answered at this stage and meet the people who will help to get your business going.
This is final judgement time, so pay attention to whether you’re comfortable and confident or not.
7. Speak to existing franchisees
When speaking to existing franchisees, ask questions such as what their lives are like, the support they receive, whether the franchisor’s start-up cost projections were realistic and how effective marketing materials are.
8. Make your decision
By now, you should have all the information you need to make a decision.
Your choice should match your financial resources, provide the right kind of lifestyle, use your skills and experience, be recession-resistant and have lots of happy and successful franchisees.
Julie Taylor is CEO of Franchise Resales