Six Things To Consider Before Buying A Franchise 

More and more people are investing in franchise ownership. As part of a franchise, owners – the franchisees – run their own business under the name of an established company – the franchisor. Experienced business owners and aspiring entrepreneurs alike are drawn to the name recognition, expert support, and exciting challenges this business model offers.  

Purchasing a franchise can be a big step toward reaching your personal and professional dreams, but it is also a huge commitment. There are several things to consider before you buy a franchise, such as what industry you want to go into and whether you are a good fit for a specific company. There are also plenty of questions you should research and find answers to before committing to a long-term business deal.  

In this blog, we’ll walk you through all the things you should consider and know before buying your own business franchise.  

1. What industry suits me? 

There are numerous types of franchise opportunities for you to choose from, ranging from services to retail. It’s important to figure out which industry best aligns with your interests, priorities, and values. If you’re interested in natural beauty, you may look into a skincare franchise. If you’re passionate about helping others in need, you may want to join the healthcare industry. If you’re having difficulty deciding, consider your past experiences, both professional and personal, and see what is most important to you. 

Another thing to consider when choosing an industry is the long-term outlook and potential growth. You may ask yourself questions, such as: 

• How loyal are the customers in this industry? 

• Is there a high demand for this good or service? 

• Is this industry seasonal or evergreen? 

• Is it a fad or will there always be a need for this good or service? 

Finally, you should consider your location. If you’re planning on staying put, your options may be limited to what is available in your area. Some industries may not perform well in rural areas, and urban environments may be oversaturated, putting you in a competitive space. 

2. What brands align with my values? 

Beliefs, values, and practices can be dealbreakers when it comes to picking a franchise to invest in. If you don’t like what a certain brand stands for or supports, then you probably won’t like having to represent their franchise. Remember that in the franchise business model, your business is established under the name of the franchise.  

3. Do I have the right qualifications? 

Most franchisors have criteria that franchisees must meet. These qualifications typically include a minimal credit score, net worth, and available capital. Some franchises may require certain certifications or previous experience in the industry or business management.  

4. Do I have enough money to invest? 

There are multiple costs to consider before starting your own franchise. Initial start-up fees and ongoing royalties vary between franchises and their industries. Find out what those costs are and how often they must be paid. It’s also important to determine how much runway you have before you can expect to see a profit.. After gathering all this information, ask yourself if you can truly afford to join this specific franchise. 

5. What are the demands of this position?  

It’s important to know what franchisors expect from a franchisee. Ask questions and figure out what your day-to-day tasks may look like as an owner. Then, evaluate whether you have the skills and experience to handle them. Some franchises include training sessions and business support coaching to help you settle into your new role. 

6. What to ask when I meet the franchisor? 

After choosing an industry and narrowing down your list of potential franchisors, it’s good to schedule a time to meet with someone from the franchise and find answers to all your questions. Although you will receive a lot of information about the franchise during your meeting, it’s critical that you have a list of questions to ask. This will help ensure that your concerns are addressed and that you have all the information you need before making your final decision. 

We’ve compiled a list of questions for you to make this process a little less overwhelming: 

• What are the initial and ongoing costs of this franchise? 

• Am I able to open a franchise in my current city?  

• Are there any perks or challenges I may face at this location? 

• Have you conducted any market studies on this territory to ensure that it can support a franchise?   

• What are the success rates of existing franchises? 

• What type of consumer research has the company conducted? 

• What are the market trends for this industry? 

• Are there any perks or benefits you offer, such as employee training or advertising? If so, what are they? 

• Has the franchise been involved in litigation?

• What beneficial vendor relationships have been established? 

• What method is used to protect franchisees from poorly performing franchises?   

If you’re still unsure what franchise to invest in after a meeting, you may find it helpful to read reviews or get in touch with other franchisees and hear about their experiences. 

Start your own HomeWell Care Services franchise 

At HomeWell Care Services, we provide you with the opportunity to give back to your community and make a positive impact on others’ lives. By owning your own franchise, you will help connect homebound individuals and their families with the compassionate support they need. We strive to make the entire process as simple as possible by offering additional support and training. Contact us or download our franchise kit to learn more.