Getting a business franchise is one of the ways that you can own a business.
While this can be very expensive, the things you get in return such as a turn-key operating system and high brand equity are usually worth it, because those will save you time and money in doing business development and setup, among others.
However, not all franchise businesses are the same – not just in terms of products, but also in the more important aspect of franchisee support.
So if you’re planning to buy a franchise business, here are five things you should also consider when deciding which one to choose.
They have happy franchisees
First and foremost, a good franchisor will allow you to talk with existing franchisees. Apart from arranging a meet-up, they’ll encourage you to visit several branches for you to observe and see for yourself how the business is profitable.
The franchise owner is people-oriented
The franchise officer should be able to arrange a meeting between you and the owner of the franchise, who in turn, must not be too busy to take some time in his or her schedule to meet you in person.
The franchisee manuals are up-to-date
The franchisor should have a comprehensive and up-to-date operations manual. This is a good sign that the business is doing well and that they’re keeping up with new processes and technologies in the market.
It’s not easy to get approved as a franchisee
It’s actually a bad sign if all it takes to become a franchisee is to pay the fees. A good franchisor should not simply accept franchisees based on the money they can invest, but also takes into account the commitment and character of the franchisee.
The franchise agreement is open for discussion
The franchisor should be willing to explain to you all the details of the franchise agreement, and not just leave you to read and sign it. They should even allow you to consult a lawyer to discuss its terms.
And that’s it, the five signs that you’re getting a good franchise business. I hope you remember these pointers well, especially if you’re planning to buy a franchise in the near future.
For those who already owns a franchise business, any other tips you can give? Please share them in the comments section below. Thanks.
- The Five Advantages of Franchising A Business
- Start Your Own or Buy A Franchise Business, How Do You Decide?
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Photo credit: Louise Ferguson
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