What do you need to know when considering a franchise business? Have you done ALL your homework in being a franchisee? There are many risks in owning a franchise. Depending on what type of industry you are in you could be the one with all the risk. Is that really fair? Do you want to risk all of your money, sweat and blood for someone else to benefit from all your hard work?
I want to educate you on the benefits and risks of owning your own franchise business versus other opportunities. My goal is educate you and tell you what you need to know before considering a franchise business. The 7 most important things to consider are as follows:
1. Do know the monetary investment that you will have to make just to gain access to owning a franchise? Most of the time your investment needs to be at least $75,000 but more realistic is $250,000 or more. And you inherent all the risk of the business while the parent company take 5-10% of your profits off the top.
2. Do you understand the space and rent involved with the franchise business that you choose? Commercial property is very expensive and can have you singing the overhead blues.
3. How much inventory are you expected to keep on hand and how much does that cost over a month or year?
4. What are your legal liabilities with owning this type of business and what is the cost to keep yourself "clean" with the law?
5. What are my insurance obligations and cost on the building, employees and personal property with this franchise?
6. How many employees will I need and how will I deal with their personal issues and how much will they cost my overhead?
7. And when considering a franchise business how long is my commute? This is important when you are working 80-90 work weeks as most franchisees are.
I understand that owning a franchise might be a lifelong dream but is it all that it is desired to be? The 7 things that you need to know when considering a franchise business are vital to your success. And I am not here talk you out of being a franchisee but to educate you that there are less risky and other opportunities that do not contain any of the 7 important issues above.
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