5 Things Every Franchise Owner Should Know
Owning a franchise business is far more stable than coming up of your own. It’s because here “You can be your own boss, you’re operating under a trademark that has instant brand recognition and the failure rate for franchises is lower than it is for mom and pop businesses.”
However, you should be doubly sure after the area where you are investing. Questions like “am I investing in the right square”, “is the location right”, “am I in the right business”, “what are the future prospects” need to be answered before investing. Here we will guide you through 5 questions that every franchise owner should know.
Q. How much intellectual stimulation do I need in my work?
The vast majority of franchises involve basic retail and service businesses that require little education or sophistication. After all, if a business is complex and cannot be replicated easily, it probably cannot be franchised. That said, having the knowledge of the business you are investing will be an added advantage.
Q. What are your priorities?
In every business or franchise to succeed, you need to devote substantially all of your working time to the operation of your franchise. So if you are thinking about doing a little bit of consulting on the side, your hopes may be frustrated.
Q. How do you deal with the public?
Most franchises involve dealing with the public, and, truth be told, the public can be rude, crude, spoiled rotten, neurotic, shrieking and just downright vicious at times. Will you be able to deal with that without letting it get to you personally?
Q. Am I investing in the right franchise?
Before buying into any franchise, you should visit as many franchise outlets as possible, particularly the really successful ones, and assess their locations with an electron microscope. Do the most successful franchises tend to be located in shopping malls, near college campuses or in urban neighborhoods? In areas with a particularly high concentration of senior citizens, teenagers or certain ethnic groups?
Q. What are your plans for future expansion?
Most franchises are reluctant to promise that they will never, ever compete with their franchisees, because they don’t really know what competitive and market pressures will force them to do in the future. Still, you don’t want to spend a ton of money opening a franchise only to find that your biggest competitor is the franchise itself.