How to get a franchise
Video: How to Buy a Franchise With No Money (Franchise Owner Reveals) 2024, June
Starting a business by buying a franchise is quite profitable: you will get a ready-made working company with trained personnel and a recognizable brand. It seems that getting a franchise is easier than ever since there are many franchise shopping sites on the Internet. But here there are pitfalls.
Instruction manual
1
First of all, decide how much money you are willing to invest in a business. If the amount is substantial, it makes sense to spend part of this money on the services of franchise consultant lawyers. They will help you decide on a franchisor and buy a franchise as profitable as possible.
2
But not everyone has substantial sums of money. If you decide to buy a franchise yourself, then take the time to study as many sites and offers on franchises as possible. Carefully read the descriptions of all the proposed enterprises. Once you have roughly decided on a franchise option, try to draw up your business plan for the development of your future company. It is needed not so much by the franchisor as you, because it will help you figure out whether this company will really be a profitable business in the area where you intend to carry out activities.
3
It is important to critically approach the price of a franchise. Sometimes quite serious companies are offered at low prices. It is worth knowing what exactly is included in this price. It is possible that, for example, it does not include staff training. This seems to be a small detail, it can be considered insignificant. However, in practice, you may encounter the fact that your business simply will not work with untrained personnel, and you will not be able to pay for training.
4
Getting a franchise involves working with a franchisor. However, how exactly it will be implemented depends only on the franchisor. In some cases, he can help with finding a place for a business, and with financing, as well as give advice on doing business. If you need such help, you need to discuss and include it in the contract. Otherwise, you run the risk of getting a “bare” company, in which you still have to invest a lot, not to mention the fact that initially engaging in an unfamiliar type of business without outside help may not be easy.
5
An essential aspect is the payment of money to the franchisor. In some cases, payment is made for the delivered goods (for example, if you buy a clothing store of a certain brand, then you pay for clothes of this brand that comes from the franchisor). However, the contract may also contain a condition about fixed deductions. Payment of fixed amounts is a rather big risk, since it is not known how the business will develop. It makes sense to agree to such a condition only if fixed deductions represent a percentage of profit.
