Considering purchasing a franchise? You’re not alone – according to the International Franchise Association, there are over 740,000 franchised businesses in the United States, employing over 8 million people. But with so many options available, how do you choose the right one? Below, we’ll outline a few key factors to keep in mind as you evaluate different franchise opportunities.
1. Consider your goals and objectives.
What are you looking to get out of owning a franchise? Do you want to be your own boss? Be part of a well-known brand? Have a flexible work schedule? Make sure the franchise you’re considering will help you meet your goals.
2. Do your research.
Not all franchises are created equal – some have been around for decades and have a proven track record of success, while others are relatively new and unproven. Be sure to thoroughly research any franchise you’re considering before making a commitment. Read through the Franchise Disclosure Document (FDD), talk to current and former franchisees, and visit franchise locations in person if possible.
3. Know your budget.
Franchises can be expensive – according to FranChoice, the average initial investment for a franchise is $250,000 (although it’s important to note that this figure includes franchises at both the high and low end of the price spectrum). Make sure you have a realistic idea of how much you’re able/willing to spend on a franchise before moving forward.
4. Consider the time commitment required.
Many people mistakenly believe that owning a franchise means you can set your own hours and work less than you would at a traditional job. However, most successful franchisees work long hours, often 60 or more per week. Make sure you’re prepared to make the time commitment required by the franchise you’re considering before moving forward.
Purchasing a franchise can be a great way to start your own business – but with so many options available, it’s important to choose wisely. Keep the above factors in mind as you evaluate different opportunities to ensure you choose a franchise that’s right for you.