By Marshall Reddy
For most people there will come a time when you have some doubt if your professional path is one you want to continue. It’s human nature to want to hang onto the things you enjoy and ditch the difficult and torturous. Usually this manifests into an internet search for business opportunities. This will no doubt, bring a lifetime of internet reading and sooner or later, you may consider a franchise model. Owning a franchise can be a great option for many people because it is a great way to leverage the skills you already have and mitigate the risk of starting a new business. Someone before you has proven the business model. Before you take the leap, take stock in these three not so well known factors.
Although owning a franchise is usually much safer than starting a business from scratch, it does still come with risk. A good franchisor or independent consultant like Frannet will help you mitigate this risk by helping you understand “a day in the life” and talk you through things like the financial requirements, family life and skills needed. A good franchisor will help you select a location or market area based on demographics that have proven to be successful in the past. You will be given contact information of successful franchisees in the network and maybe more importantly, you should also contact those franchisees that have failed. There are hundreds of opportunities to choose from. Take your time and make a good choice. However, make no mistake, there is some risk. If that makes you break out into a cold sweat, you may want to stick to the corporate world.
If you are coming from the military or corporate America, you likely fall right in line with rules and processes. That usually transfers well into being a franchisee. The franchisor has a model for doing business and they require that you do business their way. After all, they have proven the business model and know it works. If you deviate from the system, you may be putting your success in jeopardy.
If your personality is more of a maverick type, you will likely grow increasingly frustrated with the perceived lack of flexibility and you will most certainly strain the relationship with your franchisor.
Every franchise opportunity worth pursuing will require an up-front fee. The franchise fee can be as little as a couple thousand dollars, or up to $100,000 or more. Not included in that cost is the additional expense of retail build outs, leases, and equipment expenses. Be sure to understand all of this and how long it will take before you start making money. Sometimes pulling together this much cash is difficult for startups, so be sure to ask the franchisor, or Frannet consultant what your options are.
As you contemplate your future, understand that it is best to not go it alone. Bring into the conversation your accountant, financial planner and someone that is familiar with hundreds of franchise models. Seek out a broker whose job it is to find the right opportunity for you. More information can be found at www.frannetflorida.com.