Is Buying a Franchise the Right Move for Me?
You may have explored buying a franchise as an option to begin your journey to owning and running a business. Here are some considerations that will make your decision to get a franchise a more informed one.
A Tie that Binds
When you buy a franchise, you enter into a legal contract. Franchise fees, royalty payments, customer and revenue targets, number of branches—these are legal stipulations that franchisees must fulfil after a certain point in time. Violating any part of the agreement could mean losing the right to operate the franchise.
Running a franchise also requires compliance with the guidelines set by the franchisor. This applies to brand colours, logotype, store design, computer software, marketing collaterals, and workforce requirements—just to name a few. If you want full autonomy over your business, don’t get a franchise. That said, every franchisor has its own restrictions; you might find a franchise with requirements that are agreeable to you.
More than being subject to the legal and structural specifications of a franchise agreement, your reputation and operations are affected by the franchisor and other franchisees. Do the necessary research to find a franchisor with franchisees that share a common vision and live up to the values of the brand. Better yet, find out what other franchisees have to say about their experiences before committing.
Not Just About the Money
It is as the saying goes, “There is no elevator to success. You have to take the stairs”. If you want to see your franchise grow and flourish, you need to invest time and effort.
The support you get from the franchisor will greatly reduce the time spent on certain aspects. But, it is your business after all! You’ll want to have a say in scouting for appropriate locations, forming your team of staff, strategising the marketing outreach, etc.
The most successful franchise owners tend to be operators themselves. You may choose to take a step back after the initial year or two, but gathering first-hand experience with setting up, day-to-day operations, and working through issues is valuable. These experiences are especially critical when you decide to expand and open additional franchises.
Some of these may sound daunting, but a good franchisor will walk with you on this journey, see you through every hurdle and celebrate every milestone.