As an aspiring business owner, it can be overwhelming trying to narrow down a field of thousands of potential franchises to invest in. Finding the right franchise for you and your family involves considering a range of factors such as best location, industry experience, and capital investment. To help simplify your search, there are numerous questions to answer that will point you in the right direction and help ensure your decision is an informed one. This article is here to provide guidance and answers to some of the most frequently asked questions about finding the best franchise to invest in.
Many of us seek the opportunity to own a rewarding business while also achieving the type of family time we often lack in our busy lives. Whether you’re looking to start a small service-oriented business or a national retail brand, it’s essential to take a hard look at the best franchises to open. For those considering venturing into franchising, the International Franchise Professionals Group (IFPG) can be an invaluable resource. Our purpose-driven mission is based on integrity, ethics and collaboration, and franchise consultants within our group guide aspiring business owners through the process of identifying and investing in franchise businesses.
Questions to Ask When Seeking the Best Franchises to Open
At the IFPG, we suggest answering a series of questions to help narrow down potential franchise investments. Here are some of the most pressing ones to consider:
Are You Ultimately Looking for Long-Term Investment Success or Short-Term Profitability?
If it’s long-term success you’re looking for, it makes sense to invest in an established franchise brand that has a track record of proven success. This may involve taking a look at a number of franchisors that are available and assessing their financial performance as well as the expected long-term outlook for their specific industry. There are a number of ways to determine this information, such as talking to existing franchisees, looking at data from the SBA or other independent research into similar companies. On the other hand, if you’re seeking short-term returns, investing in a startup business may make more sense. It typically involves investing in an organization with no brand recognition or franchise history; however, it should still be well-researched, and you should ensure expectations are in line with the amount of capital you are prepared to invest.
What Industry Makes Sense for You?
Part of finding the best franchise to invest in requires understanding the industry. Take a deeper dive into the competitive players and how they differ from one another. Who are their customers, and what makes them so successful? Does the industry have long-term staying power, and is it growing or shrinking? These are all factors that should be taken into consideration before taking the plunge.
Are You Looking to Invest in a Business You Can Manage Onsite or Offsite?
Understanding how much time you want to commit to a business operation is key in deciding which type of franchise to invest in. Many service-oriented businesses require an onsite presence, whereas retail or food franchise operations may lend themselves to offsite ownership models. Understanding the type of commitment required upfront will shape your decision set.
Can You Identify the Ideal Location?
Choosing the best location for your franchise business is essential. It should have good visibility and match what you envision for your business model. Does the area have high traffic counts and good demographics for the type of business you are operating? It’s also important to keep in mind the type of competition you will be going up against, as well as the availability of resources to help you operate your business.
Do You Have the Necessary Capital Investment?
Finally, when it comes to making the decision to invest in a franchise, it is important to understand the upfront capital investment required. This includes examining the franchise fee, initial set-up costs for the business, purchasing necessary start-up supplies, and securing any additional funds needed for advertising, marketing or additional equipment. Knowing your budget and the franchisor’s requirements for investment will be critical in determining if the franchise is right for you.
Further Considerations When Investing in a Franchise
When making the decision to invest in a franchise, there are a few more factors to consider. Do you have the necessary experience to operate such a business, or are there skills or qualifications you can bring to the table? Furthermore, are you able to effectively manage an entire team in order to run the business?
It’s also useful to find out if any additional investment may be required to keep operations running, such as additional employees or equipment. Different franchisors will have different demands in these areas, so understanding what they require before you invest is essential.
Researching different franchises and understanding the level of investment required can help you decide if a particular franchise opportunity is right for you and your family. The IFPG exists to guide aspiring business owners through the process of identifying and investing in the best franchise to open. We provide expertise and understanding of the franchising process and are here to offer the best advice possible on what franchise to invest in, taking into consideration the individual’s goals and objectives.