Every entrepreneur rushes himself/herself into starting his/her own venture, but as we all know starting from the scratch can be complicated. To cut the long story short, have you considered purchasing a franchise?
In order to successfully manage a franchise, you need to consider the following tips:
- Assess yourself
In order to conduct proper self-assessment, you have to ask yourself some questions: Do you feel comfortable working from home or an office? Do you prefer flexibility with your time or 9:00 – 18:00 fixed working hours? How many funds do you have available?
- Consider costs upfront
You cannot use your typical expense analyses as franchisees have to pay additional fees to the franchisor as indicated in the initial agreement. In addition, expect costs that you would not usually consider, such as huge marketing expenses required from the franchisor.
- Do your own research
Franchisors especially globally owned ones have a way of exaggerating the opportunities. Make sure you do proper market research on your own. Do not let them hide facts and always request documentation.
- Talk with a lawyer
Franchise agreements can be hundreds of pages long and understanding all the terms is definitely not an easy job. Make your lawyer proof-read it and discuss your benefits and disadvantages.
- Talk with other franchisees
Usually, other franchisees are willing to talk honestly with a fellow entrepreneur. Ask them about their experience, goals achieved, surprises, etc.