If you are looking to become a franchisee, congrats, you have come to the right place!
No doubt you’ve been searching high and low for the best possible franchise opportunity for you. By now, it may feel like an endless task filled with a plethora of options – just look at our Franchises A-Z - and for every answer you receive, it draws another question.
Partnering with a franchise does take time but fear not, you will make your considered investment rather than an impulse decision – so take your time, get the answers to your questions, get all the facts and figures and all your ducks in a row so you are primed and ready to make the best informed decision when the time is right for you.
Select the franchise that is right for you, in a sector that interests you, when it suits you and of course, at a price that works for you – don’t feel like you are railroaded along, if so, hit the pause button and regroup.
A franchise is a considered investment
Often cited as the common sense path to business ownership, a franchise has a much greater chance for success than independent businesses.
On choosing to invest in a franchise, you are essentially forming a partnership with an established expert with in-depth market knowledge. The parent company has already overcome the obstacles that beset business owners in the early days - in other words; they've made all the mistakes so that you don't have to.
A franchise increases your chance for success
When ascertaining which potential franchise opportunities might be the right fit for you, begin with businesses that you have a real interest in. Selecting a product or service that you have a passion for will exponentially increase your chances of putting all your time and energy into the venture. This will be a key part of having a successful business.
Do you believe you will be able to operate the franchise and follow the systems? Remember, franchisors are looking for the ‘best fit’ when it comes to their franchise, so having a pre-existing interest in your chosen industry is essential.
Best Fit Franchisees
Investing a franchise is a long term commitment, often a 5 or 10 year renewable term so careful consideration needs to be taken.
Think about your life goals and plans and ask yourself, are you planning to stay in your current home? What does your budget look like? Can you expand the business? Do you have the support of your family? Once you’ve started this thought process, many more questions will come to mind.
Find out what your franchise fee includes
You might be thinking, why pay an initial fee for buying a franchise, and then brick and mortar franchises require significant funds for assets like stock and equipment.
A franchisor wants to recoup the costs of onboarding you as a franchisee but there is more. Another cost incurred by the franchisor is the obligation to ongoing support. There are many more areas that could be included here but the idea is to get you to ask what you get for the fee you are paying. You will probably be surprised, in a good way, just think how much it would cost to get this on your own.
Consider the total cost of a franchise
Like any business, a franchise will require working capital and cashflow to survive. It is widely known in the business world that many profitable businesses go under, not because they are not profitable, but because they run out of available cash.
This can be true of a franchise too. A franchise business (like any business) will need marketing, staff development, stock, goods or services you need all come at a cost. And that’s before you consider taking your salary or profits!
Help is at hand to assist you
Starting a franchise doesn't need to be a stressful process. Of course, as we’ve seen, there are numerous different elements at play when you begin this kind of business, but the joy of franchising is you're not alone.
There is the franchisor, other franchisees and before the process even starts, we at Franchise Direct are here to provide a helping hand
Our Ultimate Guide To Franchising in New Zealand will provide you with everything you need to know to start a franchise.
We hope to see you join the world of franchising very soon!