In Show 121 – 5 Things to Consider Before Becoming a Franchisee originally broadcast on Facebook Live on Monday 20 August 2018.
Buying into a franchise can be a really efficient way of starting a new business. But there are risks involved. Today on Fast Fix Monday we cover the 5 things you need to consider before becoming a franchisee.
1. How much will it cost?
There’s quite a few things to think about here. You’re buying the intellectual property of a franchisor and their systems and processes. You’re also going to be paying royalties over a set period of time. You need to speak with your accountant and financial planner to make sure you can afford it.
2. What are you passionate about?
Just because there is a sandwich franchise available doesn’t mean you should just
buy into it. You want to be passionate about the business you are buying into. What are you good at and what are you passionate about?
3. Do you have the time?
You need to consider the time you will have to invest in your new franchise. You’re basically buying a job. Are you going to have the time to invest in the new business?
4. What is the franchisor like?
Do your research. Find out about other franchisees and get in contact with them. FInd out how they operate their company and make sure you agree with their strategy. You are entering an agreement with this person that will last years. You’ll be a lot happier if you actually like and respect them.
5. What assistance will the franchisor provide?
Normally when a person buys into a franchise they have had very little experience running a business. That means you’re going to need help. Find out what kinds of help the franchisor offers. You need to know what you don’t know.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.