Buying a franchise can be an excellent way to start earning a great living, while building a vibrant and exciting business. As with all investments, however, you need to look before you leap. Knowing the kind of questions to ask when buying a franchise business is a key part of the process. If you don’t, you could risk buying a franchise you don’t love, or that isn’t capable of providing the opportunities you’re looking for.
So what are some questions to ask before entering a franchise? Here are four.
How Much Will I Need To Invest?
All businesses need investment capital to get started, and your franchise is no different. Your franchisor should be able to give you a detailed list of expected costs, and a relative timeframe until the business is profitable. The costs may include equipment, premises, supplies, advertising, and so much more – and these costs can mount up very quickly. So be aware of what’s involved before you commit. A Time For You franchisor will be upfront with you about the initial cost of beginning your franchising journey.
Are There Any Ongoing Fees?
A franchise is a unique business prospect, where you’re using established business IP, branding, and merchandise/supplies. This has a number of advantages, but some businesses may require an ongoing fee as a part of the franchise agreement – think of it as “business royalties”. If these fees exist, you need to know how much they are and how often they need to be paid in order to include them in your costings.
What Support Is Available?
Initial training is an essential aspect of franchising to get you familiar with the necessary aspects of the business. Franchisors that are truly dedicated to ensuring the best business growth will offer ongoing training, however, to continually improve skills. Ask about what sort of training opportunities are available for you, if any, and if there are any special requirements to qualify for them.
Can I Speak To Existing Franchisees?
Remember that a franchisor is trying to sell you an opportunity, so of course, they will present you with a very positive image of the franchise. To know what it’s really like, however, you need to speak to the people who are currently running franchises of their own. Ask for a list of names of people you can contact, and prepare some questions about their experience in operating that franchise.
Now you know four of the key questions to ask before buying a franchise, you’re prepared to take advantage of your next franchise opportunity. Contact Time For You today if you’d like to get started with your own cleaning franchise!