Business Mentor: Tips in getting a franchise business

The pandemic has led many to reexamine their lives and career choices, leading a lot of people to think of starting their own businesses. 

But setting up your own business is not easy. It entails a lot of risks. 

Apart from the usual set of challenges that entrepreneurs come across, small business owners now need to be extra cautious to ensure the safety of everyone in the workplace. 

To lessen the stress brought about by starting a business from scratch, joining a franchise brand may just be the answer. When business owners are part of a successful franchise system, the franchisor is there to provide support. Aligning with a proven brand can help prospective franchisees through the following: marketing, support, access to specific resources, and leadership.

However, the big question is: what should an aspiring franchisee need to consider when starting a franchise business?

But first, you need to understand what you are getting into yourself. This article should help guide you on how you can start your entrepreneurship journey by creating a franchise business.

1. Focus on what you think interests you the most 

I always advise my mentees to start with a business close to their heart. I think the best way to start any business is to honestly know in your core that you will be 100 percent involved in the industry. For example, if you are a pet lover, you may want to look into franchising a successful pet care service brand. Attractive pets will make you more enthusiastic about pushing yourself to make the business successful. An advantage, of course, is that you know how to take care of these animals, and it would be easy for you to adjust once the business starts.

2. Know the people behind the brand of your choice 

The getting-to-know-each-other phase is essential if you want to be part of an established brand. However, it is not enough to just know that the brand is successful. You also need to be sure if their values and objectives meet your standards. Keep in mind when you are buying the right to franchise a business, it means buying the name and the brand as well as procedures and standards developed by the franchisor. Get to meet the people in the organization and how they do business. You will be able to determine if your vision of owning the company aligns with the vision and goals of the business.

3. Scout on the location 

Choose a busy place where your store will always be visible. You also need to ensure from the franchisor that the location you are eyeing is still available for you since it is possible that another franchisee might already be there. Choose a location within the community you reside. Ask the franchisor about their criteria for choosing a location. 

4. Assess your resources 

The capital you need to start a business varies. The same goes when you opt to start a franchise business. Two critical financial figures are the franchise fee and the ongoing royalty. The franchise fee varies between industries and competitors. Royalty fees can be a fixed rate or percentage rate, collected weekly or monthly. The expenses do not end there. You must also consider the startup cost, including construction, equipment, branding, staffing, rental fee, utilities, etc. If you feel overwhelmed with the amount it would cost you, consider trying another brand.

5. Seek legal advice 

It is always best to have a lawyer check on the contract before signing. It ensures that you are fully aware of everything written, and you can ask for clarifications on specific details that you don’t fully understand. Always make it a habit to read the content entirely, knowing your involvement.

Hopefully, these tips have made you feel more confident in realizing if a franchise business is for you. 

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For more information, you may contact Armando “Butz” Bartolome 

by email: business.mentor@butzbartolome.com

FB Page: Butz Bartolome

website: https://www.butzbartolome.com