Expert Strategies for Choosing the Right Franchise Concept
January 28, 2022
Franchise opportunities exist in a variety of industries and formats. To find the right fit, ask yourself what interests you and what lifestyle you hope to achieve? The answers will help you narrow down your list of options and find the right franchise concept for your interests, skills, and more.
Consider these factors before beginning the franchise discovery process!
Is the industry one you can see yourself working in and being passionate about? More often than not, your gut instincts will give you the answer.
However, we encourage you to keep an open mind throughout the franchisor’s discovery process. You may find a passion ignited within you that you never knew existed, and it may not even be about the product or service. It may be about the positive impact on your customers, staff, or community!
What working schedule best suits you? When purchasing a franchise, you should consider when customers will need your goods or services, which varies by industry. Doing so can help you identify the concepts that offer the flexibility and work-life balance that you’d like to have.
For example, a restaurant or hospitality franchise may require you to be open on evenings and weekends. Alternatively, a service-based franchise may offer more traditional business hours.
What type of office environment do you prefer? Business models can vary from requiring a traditional brick-and-mortar presence to home or mobile-based businesses. If you’re open to all scenarios, great. If not, be sure to adjust your list of criteria accordingly.
Additionally, what kind of revenue model are you looking for? Many service-based businesses provide a recurring revenue stream, which means you can continue to support a client regularly until they decide to cancel. If you have a non-service business, the customers may come less frequently, and you will have to wait for customers to walk through your front door.
Lastly, what is the potential for growth? In other words, how are you able to open and scale the business? A franchise opportunity may have multiple revenue streams, or you may be able to open new locations or purchase additional territories.
How are you envisioning your role in the franchise? Are you planning to keep your full-time job and hire a manager to run the day-to-day? If so, it’s wise to look for opportunities where semi-absentee ownership is allowed and, even better, proven effective.
Additionally, do you prefer working independently or on a team? There are plenty of franchise opportunities for both scenarios, including those that require working with or managing only a few people. Be sure to know your preferences to focus on the concepts that align best with your comfortability and skills.
Do the franchisor’s values align with yours? Dig into the corporate culture and history of the franchisor before signing on the dotted line.
Additionally, what are the backgrounds of the executive and support teams? These individuals are likely to play a role in your success, so make sure their skills align with the needs of the business.
Likewise, you will want to speak with the existing franchisees in the system to hear about their experiences firsthand. A good franchisor will have high-touch support for franchisees throughout their lifecycle, not just during the franchise awarding or training processes. Speaking with other franchisees can give you insight into the level of ongoing support.
Most franchisors consider their franchisees to be part of the family. Be sure this is a family you want to be a part of!