What to consider when buying a franchise?
When you’re thinking about buying a franchise, there are a lot of things to consider, including:
- Any experience required
- Amount of time and energy needed to be successful
- The franchisor’s track record and the directors’ and executives’ backgrounds
- Who the competitors are
- Start-up costs, including any goods or services, including inventory, that need to be purchased
- The industry itself
- The franchisor’s and its system’s current financial situation
When should you buy a franchise?
There are three main factors that determine the ideal moment for you to start a franchise:
- Opportunity – Think about if the opportunity is the right fit for you, including the industry, market and franchise company.
- Availability – Consider, do you have the time and energy to commit to building a business right now?
- Risk appetite – Are you hungry for a chance and put will it in the work to see it through?
If you are excited about the opportunity, have the availability and want to take on the risk, then it may be the right time to buy a franchise!
While you may be excited, it’s important for you to do your independent research. Size up the competition, investigate any rules or regulations that could stand in your way, and look at the financials involved. You should also find out if you can open additional locations in the future and if there is a sizable enough population to sustain multiple franchises.
Key Advantages of Franchising
Technology, infrastructure and support: Franchise owners are backed by a support system including training, coaching, marketing and technology.
- Brand value: Many franchises get to take advantage of national or global brand recognition. Owning a franchise is analogous to purchasing a company with existing, devoted clients.
- Chance of failure is lower: When you purchase a franchise, you are buying a proven, profitable concept. According to statistics, franchises have a substantially higher success rate than independent start-up companies.
- Set up for success: With a franchise, you get all the tools, materials, and training you need to launch your business as well as ongoing coaching and assistance with management and marketing.
- Profit margin: Franchises typically earn more than individually-owned firms. Even franchises with hefty franchise fees earn substantial returns on their original investment, if they are well managed and have a solid brand reputation.
- Advertising and promotion: Through collaborative advertising and promotion campaigns, the franchisor will more efficiently reach the target customer.
- Speed of growth: The franchise network can expand as quickly as the franchisor can build the necessary infrastructure to find, appoint, and train franchisees.
- Built-in customer base: Finding consumers is one of the major challenges for every new business. Franchises, on the other hand, have a strong client base and immediate brand recognition. The chances are that prospective clients are already familiar with the brand via exposure to TV ads or travel to other cities, even if you’re building the first branch of a franchise in a small town.
- Flexible working hours: Being your own boss is one of the main advantages of running a business and with that comes the ability to work your own hours.
Franchising can be a great way to start your own business backed by the support of an experienced and fast-growing company. At WIN Home Inspection, we pride ourselves on our franchisee partnership program. We provide extensive in-house training and marketing support so that you can succeed with your business. If you’re interested in starting your own home inspection business, please visit our website to learn more about how you can become a part of a WINning team!