When you’re investing in a franchise, start-up costs could range from $10,000 to $100,000 or more. That could be a large chunk of your savings, so you’ll need to research the franchise to make sure it’s the right fit. This takes some extra time, but it increases the chances of receiving a high return on your investment.
Research the Company Online
Many franchises have websites that offer more information about becoming a franchisee. You could learn about the company’s history, profits, gross sales, industry, and training opportunities. Check out the training programs to make sure that they match your skill level. If you’re new to franchising, you’ll need a program that teaches you how to run a business.
Afterward, review the company’s official website and social media profiles to learn more about the business itself. As you familiarize yourself with the business’s products, services, culture, and demographics, you can decide if this company interests you. Typically, it’s easier to run a business if you’ve worked in the same industry before.
You can also browse review websites to see how the business treats its employees. While you’ll have some freedom as a franchisee, most companies expect you to stick to their business model. Learning about customer and employee experiences ensures that your investment aligns with your morals.
Talk to a Company Spokesperson
Attend a franchise conference to review your options and speak to companies directly. Since they’re trying to attract investors, they might not be entirely objective, so you’ll have to research their claims independently. However, talking to people in person can help you understand the company’s culture and make your decision. They might also give you pamphlets and brochures that you can take home for further research.
Hire a Franchise Broker
Franchise brokers review your goals, savings, and interests, then discuss the best opportunities in your area. If you’re eying a particular company, they could give you more information and help you decide if you should invest. Some franchise brokers work directly with companies, so they have access to data that you won’t find online.
Some brokers work on commission, while others take a fee for their services. Ask the broker how much they charge before you start working together.
Read the Latest News
Search the franchise on news websites to learn about updates and possible controversies. A single past controversy isn’t necessarily a dealbreaker; in fact, this could showcase the company’s resilience. However, if the business has recent controversies or a history of questionable behavior, this might be a bad time to become a franchisee.
Likewise, check out the company’s stock history to learn more about its profits. Most companies experience high and low periods, but a company in the middle of a decline is a risky investment. Some franchisees enjoy the challenge, but you might inherit a toxic company culture as well.
Overall, this information helps you decide if this franchise suits your budget, goals, and work ethic. Once you’ve chosen a business, reach out to the company to officially request more information about becoming a franchisee.