Multi-Unit Franchise Experts

Franchise in Bakersfield, California

Things to Consider When Investing in a Franchise in Bakersfield, California

Franchising has quickly risen from a small business structure to a global business model. This versatile system has become increasingly popular throughout the United States and especially in Bakersfield, California. It is partly due to its efficiency and tax benefits that many business owners in Bakersfield and throughout the United States have made the switch to franchising.

Therefore, potential franchisees in Bakersfield must understand the process and potential challenges something as powerful and broad as franchising can pose. As there are few guarantees and assurance in franchising, potential franchisees must perform due diligence and extensive research to ensure success with their investment.

This article serves as a guide for potential franchisees in Bakersfield to prepare themselves to make an informed decision. In this article, we will discuss what a franchise is, how you can go about researching a franchise before you invest, how you can prepare to become a successful franchisee, and the benefits of choosing a franchise in Bakersfield.

What is a Franchise?

A franchise is a business agreement between a franchisor and a franchisee. The franchisor is the parent company who establishes and develops the business, while the franchisee is an individual or business who then pays a fee and follows certain standards put in place by the franchisor. Typically, the franchisor offers a brand name, a product or service, and an operating system already established and proven to be successful. In return, the franchisor expects financial security and longevity from the franchisee’s store.

The franchisor provides the franchisee with the necessary tools, training, and guidelines to ensure success with their investment. These tools will assist the franchisee in establishing their brand and product in the local marketplace, as well as provide ongoing support after the first day of business. Some of the procedures that should be covered include questions about marketing efforts, store layout, employee training and customer service guidelines.

This type of business allows investors to get financially involved with an established business without the risk of starting a business from scratch. It provides the opportunity to own a business and become financially independent.

Research Before Investing

Before any franchisee can even think about signing a contract with the franchisor, they must thoroughly research the franchisor’s options, and the franchise model they offer.

First, research must include the financial stability of the franchisor. The franchisor should have all relevant documents readily available so potential franchisees can understand the specifics of the business plan, the trend of the local marketplace, and the estimated costs involved.

The market analysis should provide a current and detailed overview of the geographic area the franchise will be operating in, so franchisees will know the expected opportunities and any competition they may face in the area. The market analysis should include data such as population, consumer habits, and a comparison with other businesses in the area. This allows the franchisee to understand the local marketplace and helps them to make an informed decision on the viability of the business.

As the local marketplace, trends, and consumer habits are constantly changing, potential franchisees should take the time to understand these changes and how it can potentially affect their business.

Finally, potential franchisees must understand the costs and fees associated with the franchise and should ask for a complete breakdown of all related costs such as Training Fees, Royalty Fees, Initial Investment Fees and Ongoing Operational Fees. This allows franchisees to understand the financial commitment they are making and can help them to find the best deal for their franchise choice by comparing different franchise models.

Prepare to Become a Successful Franchisee

Once franchisees have thoroughly researched their chosen franchise model and have confirmed that they are financially and logistically able to commit to the business, they must begin to develop a business plan to ensure success. The business plan must be tailored to the franchise and should include sections such as Executive Summary, Management Plan, Marketing Plan, and Operational Plan. This plan should be used as a guide to help the franchisee understand their vision and as a reference to measure their progress with the business.

The Executive Summary covers the basics of the franchise such as their mission, objectives, and goals. In the Management Plan, potential franchisees should consider how they plan to staff the business, manage operations, and update business practices in the future.

The Marketing and Operational plans should cover planning for customer interactions, sales and marketing strategies with local businesses and organizations, and promotional ideas.

Bakersfield, California

Bakersfield, California is a great city for potential franchisees to explore new business opportunities. It is located in the San Joaquin Valley and is known for its natural beauty, stable economy, and diverse population. This thriving city is a great place to do business and it is not surprising that it has become a popular spot for entrepreneurs.

Additionally, Bakersfield has organized programs such as Start-Up Bakersfield that serves as a hub to provide resources to entrepreneurs interested in launching a business in the city. The program offers seminars to businesses to help them understand the steps needed to launch a successful business.

Benefits of Investing in a Franchise

Investing in a franchise can provide potential franchisees with many benefits. Firstly, the franchisor provides training, operational guidelines, and resources to reduce the learning curve and help the franchisee succeed. Further, the franchisor will be responsible for marketing the business and brand name, which can save the franchisee time and money invested in marketing efforts.

In addition, a franchise can provide the franchisee with an existing customer base and loyal customers can be more resistant to economic downturns. Further, many customers already love the product or service being offered and prefer buying from the same brand due to trusted consistency. Finally, owning a franchise can provide the franchisee with more control in their business decisions and life.

Topics:

Franchise,

Franchisor,

Franchisee

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