As you evaluate franchise business opportunities, you'll be knee deep in balance sheets and other paperwork. Don't let those details distract you from finding out these five big things you should know before you open a franchise business.
1. The franchise concept's staying power
Ask your prospective franchisor for demographic details and other information that proves the concept is relevant today – and will stay relevant well into the future. With the aging population growing year-on-year, a senior care franchise represents the type of business that can thrive for decades to come.
2. The concept's alignment with your values
If you purchase a franchise business that bores you, you'll soon find work becomes a grind. On the flip side, if you buy a mission-driven franchise operation that aligns with your own values, your work days will provide a true sense of fulfillment.
3. What's included in the total investment cost
As you evaluate different types of franchise concepts, be sure to get detailed information about what's included in the total investment cost. Some franchisors don't include comprehensive new owner training, for example, while others do. Getting these details allows you to make an apples-to-apples comparison of different concepts.
4. The funding options available
Again, different franchisors offer different types of financing and terms. Scrutinize your options to compare various concepts through the same lens.
5. The territories available
Nothing could be worse than settling on a franchise concept only to discover the franchisor has no locations available in your preferred territory. If you strongly prefer a specific territory, tell the prospective franchisor early in the process.
Of course, evaluating a franchise business requires performing a lot more due diligence than just knowing these five things. Contact us today for more information and to discuss the many questions you should ask before you purchase a franchise business.
