What kind of person should buy a franchise? If it is something that you’ve considered in the past, or are now considering, then this could be a pertinent question. After all, not everyone is suited for this type of work.
Many people enjoy the structured environment that full-time employment offers. Others find the uncertainty involved in running their own business, albeit a franchise, off-putting or even alarming. So is it right for you? Let’s take a look at four top reasons why it just could be.
1. You want more control
With a franchise, you’ll still have involvement with – and guidance from – the franchisor. The extent to which this guidance is hands-on varies, but if you’re after complete control of your business then franchising may not be a model that suits you.
You’ll still have to adhere to the franchise’s merchandising and policies. On the other hand, so long as you’re happy to work within the franchise’s parameters, you can actually find a good deal more flexibility and control within the system than is typically offered in regular employment.
2. You want some security
Setting up and running your own business from scratch is a process fraught with uncertainty and pitfalls, and even those people that do a good amount of research and are experienced in the field can find the challenges difficult to deal with at times.
Most people setting up their own business don’t start making a profit straight away, so it can be problematic if you don’t have solid finance or other funds in place. A franchise, on the other hand, is a tried-and-tested model that offers a level of security because there is already brand awareness and an existing customer base.
You’ll also benefit from the ongoing support and training that your franchisor can offer, rather than being thrown in at the deep end and left to figure things out for yourself.
3. You enjoy hard work
Franchises don’t necessarily require the same number of long hours that setting up your own business may call for. But they do still require a good level of enthusiasm and input, and this is where some people fall down, thinking that all the hard work is already done for them.
Depending on how well known the franchise is, the brand name should indeed help to draw some customers, and you'll also benefit from exclusivity clauses, but this isn’t a route for those looking to just kick back and let the brand name do all the talking.
If you’re looking to buy a franchise, you still need to be motivated and committed. You need to be able and willing to devote the necessary time and energy to the venture, and at the same time you’ll need to follow the franchisor’s systems and policies. So choosing the franchise that fits in with your skills and lifestyle is critical.
4. You can afford it
Buying a franchise can be surprisingly expensive, especially if it’s a well-known name. It’s not something that everyone can afford to do, so you may need to consider your finance options and budget carefully. But if you have access to good credit or other available funds, and you have answered yes to the other three questions above, then buying a franchise just might be for you.
Next essential read: How to choose a franchise.