Jumping into finding franchise opportunities can be a daunting task. Take a step back, and ask yourself what you are trying to accomplish by buying a new business. If you don’t get real with yourself and truly understand your overall goal, you will begin this journey already on a path that already does not bring out the best in you.
Creating a roadmap so that you are aware and certain to ask all of the right questions is crucial. Just like with any other research project, you want to make sure that you get good information from your research so that you are making the right informed decisions.
As you are researching, the 3 major areas you want to focus on for finding franchise opportunities are:
Knowing yourself is the beginning of this entire process. If you don’t know yourself, the success of your business will most likely fail. You need to ask yourself the following questions:
- What do you want out of your franchise business?
- Are you in a position financially to invest in a franchise?
- How much money do you have to invest?
- Does your family support franchise ownership?
- Can you multi-task and manage several projects at once?
- Are you willing and able to follow a proven franchise system?
- Do you have an exit strategy?
After you have answered these questions and you are ready to continue on finding franchise opportunities, you need to think about what skills you possess that have made you successful in your previous career. If you understand your skills, that is key. You most likely don’t want to get into selling and marketing if you were once an accountant. You will want to stay away from franchise opportunities that require skills you don’t have.
2. The Market
Knowing the market where you will be operating your franchise business is another major area of focus. You will want to know if the concept will work or currently does work in your area. When determining whether or not a franchise will work in a particular market, as these questions:
- Will you be the first franchise system in the area? Or is there already one of this kind operating?
- Will your franchise be the last on in the market? Is that good or bad?
- Do you have an understanding of the competitive landscape?
- In the market that you need to succeed, is there prime real estate available?
After thinking about the questions around the market and location your franchise business, you may want to request to speak with franchise owners from similar markets. In addition to franchise owners from similar markets, you can speak to those with occupational backgrounds and even husband and wife partnerships. You may also reach out to franchisees that may be absentee owners if that’s the investment route you are seeking.
3. Profitable Franchises
As you are doing your due diligence and finding franchise opportunities, you need to determine who the top franchisees are and why they have become successful. Think about the process of becoming a franchisee much like the process of joining a gym. When we are working with people who are like ourselves, we tend to be the most comfortable and do our best.
You will have the opportunity to talk with franchisees as you start the sales qualification process with franchisors. The most valuable information when choosing the right franchise opportunity comes from this step. The FDD or Franchise Disclosure Document will be given to you at an appropriate time during the qualification process. This document will have a list of franchisees. You should ask your franchisor if you would be able to talk to different levels and segments from the most successful to those who haven’t achieved the same level of profitability. The information that you gather will help you decide what to do and not to do.
In order to bring out the very best in you, really think about these three things when finding franchise opportunities. It is important for your success that you can say that you are passionate about the business you choose. Knowing yourself, the market and profitable franchises will all work together to make you successful and have the passion to be the best.