Is Franchising right for you?
- How much intellectual stimulation do I need in my work? Although there are a growing number of professional franchises (such as executive coaches and corporate trainers), the vast majority of franchises involve basic retail and service businesses that require little education. Most franchises want “owner-operators" people who not only keep the books and handle the finances, but also provide customer service and handle the basic work. Depending on the labor market in your area, you may or may not be able to hire employees to do the basic work. If you posses an undergraduate degree or MBA, you may feel underutilized or bored with running a franchise.
- Do I have other priorities in my life?
In some franchise agreements there may be a clause requiring you to devote most or all of your working time to the operation of the franchise. If you are thinking about maintaining a full-time job or part-time work, you may want to re-evaluate your situation.
- How do I feel about dealing with the public?
Most franchises involve dealing with the public. Will you be able to deal with that without letting it get to you personally?
- How do I feel about being stuck in one place?
When you buy a franchise you can be limited to a territory and may be limited from opening new units or even advertising outside that territory. Ask yourself if “I want to be in the same area for the next 20 years”.
- Is my territory the right one for this franchise?
Before buying into any franchise consider visiting as many franchise outlets as possible, particularly the really successful ones, and make good assessments on the operations.
- Are you planning to open additional stores?
It may be a good idea to forecast opening other stores in your territory.
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