Close X
Friday, October 4, 2024
ADVT 
Business

Be Your Own Boss

INPUTS By JUSTJUNK, 23 Jul, 2018

    A few tips for anyone considering buying a franchise in any sector

     
     
    Franchising is a fantastic way for budding entrepreneurs to make the leap from punching the clock for someone else to working for themselves. But just because you’re buying into a brand and business model that’s already up and running doesn’t mean all of the hard work has already been done for you.
     
    Launching a successful franchise demands equal parts research, determination and hard work, says JUSTJUNK President Mike Thorne, who has helped franchisees across the country clean up in the junk removal industry. “The single most important thing a prospective franchisee needs to consider when buying a franchise is the strength, depth and commitment level of the management team at the franchisor level,” Thorne says. “You’re investing in both a proven model and a support team to help drive the growth of your franchise.”
     
     

    Here are a few tips for anyone considering buying a franchise in any sector:

     

    1  Do your research 

    Speak with as many existing franchise owners as possible to get a solid understanding of each franchisee’s experience from start up through to the maturity of their franchise. Here’s the single most important question to ask: “Knowing what you know now, would you make the investment again if you did it all over again?” 
    If the majority of franchisees say yes, you know you are getting involved with a great franchise system.
     

    2  Look for a proven track record 

    It is important to look for a franchise system with a proven track record of successful franchisees with little or no franchise closures. Entering into a brand new franchise system where the systems and model have not been fully developed adds a greater level of risk. Although there is more room to experiment and collaborate with the franchisor during the formative years of a franchise system, the risks are higher as the concept may not be fully proven.
     
     

    3  Do your due diligence 

    It is critically important to find a great franchising lawyer who can review the Franchise Disclosure Document and help you determine if the franchisor will always act in good faith when resolving issues with franchisees. Be sure to avoid franchisors whose management team and legal representation are quick to fire legal letters across the table rather than discussing matters over lunch or coffee in an effort to resolve issues amicably.
     

    4  Determine your investment threshold and stick to it

    Take a deep look at your finances and know whether you can handle the start-up costs. It’s also essential to calculate your return on time and your return on your investment prior to buying your own franchise. Every individual has a different level of income they are seeking to achieve from their investment so don’t be afraid to ask existing franchisees about profitability along with the number of hours they invest each week to ensure the business is profitable.
     

    5  Follow your passion

    Running your own business takes hard work, long hours and relentless dedication, especially during the start-up phase. You need to love what you do so pick a franchise system that matches your talents and your passion.

    MORE Business ARTICLES

    When it all comes crashing down

    When it all comes crashing down
    While potential buyers would be crossing their fingers hoping their chance to enter the highly competitive market is around the corner, experts are predicting that it’s not in the cards in the near future.

    The Taxing Cost on Foreign Residents

    A dip in home sales has been reported in the short few weeks following the implementation of the tax but insiders can only speculate on its long-term effectiveness at this point.

    A Million Over Asking

    A Million Over Asking

    Good news if you’re selling your home but bad news for most home buyers who are struggling to find a house that suits their needs while staying within their budget.

    Low Flying Loonie & BC Housing Affordability

    Low Flying Loonie & BC Housing Affordability

    DARPAN examines the Canadian economy to help you understand the global collapse in oil prices and the domestic implications it could have on Metro Vancouver’s housing market.

    How To Make Money in the Stock Market

    How to get invested before making an investment. While you might think 'buy low, sell high' is all you need to know before you throw your next paycheck towards a low cost stock option, there are certain fundamentals that will save you from unnecessary losses.

    Expanding Canada’s Business into Asian Markets

    Expanding Canada’s Business into Asian Markets

    Maintaining a prosperous Canadian economy is challenging as international markets are highly competitive forcing Canada to remain vigilant in the pursuit of its prosperity. As such, continued expansion into emerging markets, with a particular focus in Asian economies will help drive local financial growth for Canadian businesses.

    PrevNext