Would you like fries with that? Which gym should you join? What automotive franchise services your car? There are a lot of questions to ask when patronizing franchises. The same goes if you’re thinking of having your own.
Are you suited to the franchise?
The very idea of a franchise attracts so many people that often, they fail to consider if the franchise itself holds any meaning for them. Make sure the franchise you select is in an industry you enjoy and can see yourself working in for many years in the future.
How much capital can/should you spend?
In most cases, the amount of initial capital you have will determine what types of franchise licenses you can purchase. But it’s important not to raid your entire savings account to secure this capital. Aim to have a year or more of living expenses in liquid funds while the business gets off the ground.
Will the franchise turn a profit?
Although there’s no magical way to know if a franchise will be successful, its track record provides a good starting point. Getting an independent financial analysis of the franchise is a step in the right direction as well.