Franchises are great business opportunities. They lessen the risk associated with starting a business from scratch. Instead, they offer a proven system for building an established brand that you can capitalize on. But a franchise isn’t always the best choice for an entrepreneur. How can you know if starting a franchise is the right business opportunity for you? We have five questions you should ask before investing in a franchise opportunity.
Do you mind having a boss?
Despite what you might think, you actually do have a boss in a franchise. It’s one of the things that surprises some new franchise owners. Sure, a franchise does mean you are your own boss, the terms for how you run your restaurant are dictated by the parent company. This ensures that you are staying within brand standards to offer customers a consistent experience. But it also means that there is a formulaic element that you will need to ascribe to and that corporate will be looking over your shoulder.
Are you comfortable with the brand?
How well do you know this business? If you’ve been a customer of the business, you’ll understand at least what the customer experiences. But what’s really going on behind the scenes? Some questions to ask include:
- How long has the brand been around?
- What kinds of startup costs will you incur?
- What will be expected of you?
- What was the experience of other franchise owners?
- What competitors are in the market around you?
Do I believe in the product?
This is a question that’s related to #2. You want to be sure you can stand behind what you’re selling or it’s just not going to work. Keep in mind you’re not going to be able to make changes to the formula for the brand’s success or the brand itself. Think about whether this is a brand that you can still back just as it is. If there are a lot of things that you think you would change, a franchise may not be the right fit for your business venture.
Are you ready for the brand responsibility?
This is a tricky question and one worth considering. If you’re a solo entrepreneur, you have the luxury of figuring out and building your brand. A franchise owner must take on the responsibility for the brand itself and commit to building and strengthening it. On the flip side, you will usually have a lot of brand recognition that a from-scratch company simply will not have. On the other, you need to carry the weight of an established brand that has standards you must uphold. Are you ready for that awesome responsibility?
Do you know your goal?
If you can’t answer this question, you’re going to have problems. Soul searching is a necessary part of any business, so knowing the “why” behind your franchise investment is critical to ensuring your success. What’s in it for you? What is your personal vision? You need a business plan that maps out the beginning, middle, and end of your franchiser journey.
Are you ready to own a little piece of Gecko Hospitality? Our lucrative hospitality business is ready for you to open your own branch and get started on a rewarding entrepreneurial journey. Talk with our team about how this opportunity is the right one for you and your family and how we can help you on your way.