Franchises are a desirable career path for seasoned business executives and aspiring entrepreneurs who want to run their own business. You can be your own boss, while benefiting from operating a trademark business with a proven system and established customer-base. In addition, while the failure rate for startups is high, franchises are far less likely to fail. But, before becoming franchise owner, consider the following factors.
What does it take to be a franchise owner?
The role of a franchise owner is similar to that of a traditional business owner. You will wear multiple hats and oversee all areas of your franchise location, including marketing, operations, human resources, and finance. A successful franchisee is knowledgeable and experienced in these respects.
Do I have adequate financing?
Review your financial information, including your assets and debts, and determine your net worth. The franchise may have a minimum net worth requirement for franchisees. In addition to calculating your net worth, consider the costs you’ll incur to launch and run your franchise location. The franchisor should be able to outline these costs, such as in the UFOC. Also consider hidden costs that might not be as clearly spelled out, such as rent, legal and accounting fees, and insurance.
What’s the earning potential?
Along with calculating the above costs, you need to determine the earning potential. Factors like location can influence a franchisee’s profitability, so don’t base your earning potential on another franchise unit. Request comprehensive financials from the other franchisees and see what they did to be successful.
Does the franchise have a proven business model?
You want to invest in a franchise with a proven business model and that provides the necessary training for you to learn the system.
1-800-Radiator & A/C franchises is one of the top-performing and fastest growing franchise networks in the automotive industry. Learn about franchise opportunities at 1-800-Radiator & A/C today: www.1800radiator.com/franchise.