Factors to Consider When Buying a Franchise
Imagine a world where everyone was able to play to their strengths, work at what they’re passionate about and make money doing it!
The development of entrepreneurs is imperative to a thriving economy and whilst owning a company is a pipe dream for many, the option might not be as difficult to achieve as you might think. With millions of franchise opportunities available, is a franchise the right choice for you?
In this article we guide you through some useful factors that you should consider before taking the leap.
Being a franchise owner is not for everyone. It takes a certain type of person to be the head of a company, especially when it comes to upholding the franchise’s brand reputation and following certain rules.
- As a franchisee you need to be a strong leader, have the ability to work with people, strong communication skills, be able to follow instructions, possess an unwavering desire for success and a tenacity to roll with the punches.
- If you are a bit of a wild child who likes to colour outside the lines, owning a franchise is possibly not the right entrepreneurial project for you. Assess your strengths and make sure they line up with the franchise choice you are making.
- There are many options available, but ensure you choose a brand that speaks to your passions, but experience and passion in your chosen field also plays a huge role.
- We do not wish to discourage first time business owners from reaching for their dreams, but having a solid knowledge of the basics of running a business and extensive experience in your chosen franchise field will ensure that you are able to make a well informed go of the company instead of worrying about learning things from scratch.
CONSIDER THE FACTS
Always start by doing your homework. Once you have your eye on a potential franchise, dig a little deeper.
- Speak to other franchise owners about their experiences. Are their branches thriving or struggling? Ask the difficult questions. How easily do they find staff? Is the Head Office supportive and guiding them on their journey? What have they learnt? How long did it take for them to become profitable?
- Gather your intel. Bear in mind that not everyone will be happy to divulge this information, but take what you can and run with it.
- Consider the history and reputation of the franchise you wish to purchase. How long have they been around? Is the brand well-respected (not only in its industry, but in general)? Is the brand ticking all the boxes? What is their social media presence like?
Does the main brand support its franchises through marketing and profit-earning strategies? What support is available to you as a franchisee?
- Ask to see numbers. Any franchise worth investing in will be able to answer all questions and tick all the boxes.
CONSIDER YOUR PROS & CONS
Longevity is the name of the game in any industry, and preparing to purchase a franchise should be a step to securing your future.
- After considering yourself and considering your facts, make an old-fashioned pros and cons list. Start with your money and the cost of the franchise, work your way through all the possible questions you might have. Cons are not always permanently bad and sometimes they are necessary just so you can be prepared for any eventuality.
- Always err on the side of caution. What will happen if you DON’T make money in the first 3 – 6 months? Have you got a contingency plan? Check out the competition and what they’re offering and make comparisons.
Go into current branches and watch how they are running. Speak to Members, and feel the energy. Is there pride in the brand? Does being in the business space make you happy? Can you see yourself there everyday? Remember, an informed decision is a good decision.
Choosing a franchise or taking steps to become a franchise owner should start with you choosing a business that reflects your interests and your lifestyle.
Passion always perseveres and if you love what you do, you’ll never work a day in your life.
Consider hiring some professional help to talk you through the legal jargon and gather a support system in your corner to double check you. Two brains are always better than one.
As one of the fastest growing franchises in the health and fitness industry, Body20’s business model is absolutely unique and yields measurable results.
With over 46 Studios in South Africa and Africa, and our footprint making strides internationally, it is safe to say that we have a winning formula.
Body20 Franchisees receive training and ongoing support throughout their journey. Our franchise model provides a high return on investment due to strong-unit economics and streamlined operations. And our numbers speak for themselves.
If you are interested in becoming a franchisee or would like to simply test the waters, you can join a Body20 Discovery Session to get all the answers you need.