The Franchise Industry is continuing to grow in 2015. According to IFA president Steve Caldeira, “Independent, locally owned small-business men and women, including more veterans and minorities I might add, who own and operate franchise establishments… are growing faster than other businesses. They are creating more jobs at a faster pace than other businesses and they are also producing more sales growth than other businesses.”
There is no doubt that owning a franchise business can be a rewarding and fulfilling experience for aspiring and experienced entrepreneurs.
If you’re reading this, you are on the right track to learning more about franchises and understanding how they can help you reach your personal and professional goals.
So, how do you select the right franchise business in the US? In this article we will focus on two immediate steps you can take in deciding if business ownership through franchising is right for you.
First, seek out friends, colleagues, acquaintances who have owned a franchise and learn from their experiences. Ask the hard questions and expect to hear the good and the bad. All businesses have risk, so it’s important to remember that the daily life of the entrepreneur is filled with both obstacles and opportunities.
Forbes recently published a great article with 10 important questions to ask a franchisor. These questions can also be applied to the franchisee. You can view the article from this link.
https://www.forbes.com/sites/caroltice/2012/06/13/10-seldom-asked-questions-to-answer-before-you-buy-a-franchise/
The second step is to do your research and surround yourself with a team of professionals who are focused on YOU. Let’s call them your, “professional network”. Their job is to look out for you and guide you through the entire process.
Your professional network should include a good accountant, franchise consultant and reputable attorneys (franchise and possibly immigration focused depending on your situation). Having the right team is imperative. Don’t be afraid to ask for references on any individual you are considering to become a member of your professional network.
Before you sign any commitments, engagement agreements or contracts, or pay any “deposits” have a complete understanding of what you are signing up for. That includes the total amount you will need to pay for each service and exactly what you will receive in return.
Above all else, work with people you trust. You are considering an investment in a franchise business. It’s a big decision so make sure you have the right team that is looking out for your interests.