How to Increase your Chances of Owning a Successful Franchise
According to much of the research regarding the success rate of businesses, it is more likely that a business owner will achieve better results by purchasing a franchise rather than creating a brand new business. Although most franchise companies are developed based on initial business success, a potential franchisee should perform a preliminary investigation before joining so that the chances for success are higher.
What type of information to obtain?
It is important to determine how strong the business model is that is in place within the organization. You will have a better chance of success if the support system is solid, which is much more likely if they are further along in the expansion of the franchise.
If they are at least on the second stage of growth (past the first 25 units), they should have built a solid infrastructure that will provide decent support for you to operate your franchise.
Talk with other franchisees
In order to help you finalize your franchise choice, you should interview at least two or three other franchisees within the organization. It is best to talk with franchisees that have been with the company for a minimum of one year so that you can obtain adequate feedback.
Find out if they have achieved their financial goals. Also, you will want to hear from them to determine how satisfied they have been with the support they have received from the franchisor.
Talk with the franchisor
The franchisor and his or her support team should be willing to communicate openly with you about the business. Some questions to ask include:
What is the history of the franchise?
How long have they been in business?
What stage of expansion is the franchise in: the initial 10-25 units or beyond?
Be certain that you are comfortable with their method of communication.
Check outside sources
It is always wise to check with the Better Business Bureau to see if any complaints have been lodged against the business before investing.
Lastly, although you may locate a solid franchise to partake in, your success will also rely on what you bring to the business with regard to skill level and dedication.
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