Franchising is one of the most popular business models today. There are many different type of franchise opportunities to buy into. Finding the right franchise business in the vast amount of possibilities may seem difficult. Researching a franchise business opportunity before investing will make deciding on a franchise business much easier.
When deciding on a franchise business it is important to take into consideration the varied costs involved in purchasing the business. Setting goals as to how much you are able to initially invest, and how much money you are able to continue investing as your franchise business grows is an important first step. The cost of initial franchise fees could range from tens of thousands of dollars to hundreds of thousands of dollars. Other costs to consider in initial start-up of the franchise business can be rent for a pre-existing office, store, building or facility, or the cost of construction for a new building. Other start-up costs may include the cost to equip the business, initial inventory, operating licenses, insurance, and promotion fees.
Your skills, training and education can guide you in deciding on a franchise business. Certain businesses require training, licensing or certifications for their owners and employees. Some of these types of businesses may include real estate agencies, auto repair, interior design, or tax preparation. Investing in a franchise business that you already possess the knowledge and training for should increase the speed to get the business up and running. For example, if you enjoy vaping and the electronic cigarette industry then something like a Vapor Galleria Franchise Store would be a great investment. You already have knowledge of the product and are familiar with the particular industry and its customers.
Having a clear picture in your mind of what your franchise business looks like before you decide will help with narrowing down the business possibilities. Decide what type business or industry you would like to work in, where the business is located, and what your business environment is like. How you want to do business with your customers is another consideration, such as whether you want your franchise to be a sales oriented, or service type business.
With so many businesses offering franchising opportunities there are many ways to find available businesses. Some possibilities include visiting local franchise outlets that you may be interested in, attending a franchise exposition, or contacting a franchise broker. Franchise handbooks are an easy way to find franchise business opportunities. The handbooks are generally available either online or at a local library.
The Franchise Disclosure Document is a document about a franchise business that the franchisor is required to provide to you before you sign any documents or invest any money into a franchise. The purpose of the document is to help the buyer weigh the risks and benefits of owning that particular franchise. There are 23 specific items that are required to be listed in the document. By regulations these items must include information about the franchise, the franchise’s offices and about other franchise owners. The Franchise Disclosure Document is enforced by the Federal Trade Commission.
Having a clear picture of what your franchise business investment will look like will help in deciding in a franchise business right for you.
- Federal Trade Commission. “A Consumer’s Guide to Buying a Franchise.”
9 April 2016
- Federal Trade Commission.
9 April 2016