Placing a franchise will give you the opportunity to have more control over your life. We want you to buy a franchise, but for the right reasons.
We want to make sure that only the most qualified people (not just financially speaking) buy franchises that are right for them, and the best franchisors.
In addition, we try to be sure that the future owners of franchises know that they need to have the personality and qualities necessary for their business to be successful.
There are many reasons, and very popular, why people buy a franchise, but who said that just because something is popular is fine?
For example, McDonald’s franchises are very popular (with more than 31,000 restaurants). Does it mean that McDonald’s franchises are good? Even if you think so, what do you consider “good”?
- Do they have good food?
- Is your business model good?
- Do they have good working conditions?
This post is not about McDonald or other big franchises, or their business models. It’s about you, the future owner of a franchise. We want you to look for your own reasons to want to put a franchise.
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The following list includes some of the reasons most mentioned by people interested to buy a franchise.
- You cannot find a job the reason why this is the first item on the list. It’s hard enough to start a business without the added pressure of “I hope I can make this work” in your head. Do not buy a franchise (or any other business) because you have to do it. Buy a franchise because you want to do it.
- It’s fashionable! Really? How long has the franchise you are thinking of buying, “fashionable”? One month? One year? Two or three years? Have you ever bought a “fashionable” car? Buying a popular car is a challenge. What ends up happening is that you stay with your 2nd or 3rd choice of color, (because your 1st option is totally exhausted) and you end up paying a lot of money. To this, you can add the possible problems that have not yet appeared. The same can happen with a “fashion” franchise. You may not get the location you wanted in the first place, and you may pay a lot for your franchise, and then … there are the possible problems.
- There is a privileged location next to your house. What do you have in mind for that place? A restaurant? A loan shop? A shop of everything to 1 Euro? Believe it or not, the search of the premises in the selection process of a franchise usually occurs at the end of the information gathering. Forget the location, find out if you have the right profile for the franchise you want to buy, and if other franchisees are happy and making money.
- You are in love. Exactly, you’re in love with the product or service, and it just so happens that it’s a franchise. Before jumping into the pool with that business, stop and think for a moment. Simply because you love the food and atmosphere of La Cantina Mariachi, you do not have to become a franchise. Have you ever worked at a restaurant? If not, maybe before buying a franchise in this sector you should work on it for a while.
- Some family member has just returned on a cruise and they do not stop talking about “that restaurant” they liked so much. They describe your experience and give you the owner’s card, which turns out to be thinking of franchising the business. First, someone who is “thinking about franchising,” is likely to be someone you should not waste a lot of time with. Even if they end up franchising, it will take a few months to have everything ready to start franchising. Dedicate your time to concepts that are already franchises, please.
- You have always wanted to be an entrepreneur. First of all, congratulations, we need more people like you. Now, please, do not confuse being an entrepreneur with being a franchise. It is not the same. This is a general problem in the sector. For some strange reason, some franchisors insist on announcing their opportunities using slogans like, “Have you always wanted to be an entrepreneur?” Do not be fooled. There are certain things that can be considered as “enterprising”, but you will not be a true entrepreneur. The inventor of the franchise is.
- You have finally found a partner for your business. Congratulations!! Are you really going to open a franchise because you’ve found a “partner”? How well do you know this person? Is it, at least, a family member? Do you know all the legal paperwork that you will have to prepare? If you do not need a partner, try to avoid them. If you need it, make sure that he/she have the skills and/or knowledge that you lack, so you can complement each other.
We hope that these examples will help you to think about your own reasons for setting up a franchise. For the right person, at the right time, with sufficient economic capacity, even if he is not too enterprising, and does not want to be fashionable, investing in a franchise can be fantastic.
There are many “scary stories” in the franchise sector, we hope that your case is one of those and can help you achieve professional success.