18 Questions for Potential Franchisees to Ask Themselves: Part 2
In the first part of this series you considered nine questions any potential franchisee should ask themselves about how to get started in a franchise business. Here are the remaining nine questions you should ask yourself as you start to explore different franchise opportunities.
10. Do I want a new or established system? While an established system may have more support and you may feel more secure about your financial success, a new system may allow more creativity and independence.
11. Do I want a large or small franchise system? About 60% of all franchise companies have fewer than 50 locations, so you'll have a bigger choice if you opt for the newer, smaller systems.
12. Do I want a system with slow and steady growth or one experiencing rapid growth? This changes franchise to franchise, and will often depend on how many hours you would like to put in over the first couple of years.
13. What kind of attitude do I want from the franchisor? Paternalistic? Dictatorial? Collegial? Laid back?
14. How important is name recognition? On a regional or national basis? Maybe in your specific location, you feel a well-known brand name would be a huge draw, or the complete opposite.
15. Will I be happy with one or two franchised units or do I want to own multiple units or develop an entire area?
16. How much can I realistically invest in a franchise (money that does not have to be borrowed or raised elsewhere)?
17. How much should the total investment be? Is it worth it to put more up front and get more in return, or to start small and gradually work your way up?
18. Do I need to find a franchisor that offers a low-interest financing program or has an established third party financing relationship?
4 Things You Need to Open a Franchise
One of the most popular questions we get asked is, “What does it take to open a franchise?”
Top 5 References to Applebee's in Friday Night Lights
Fans of the recently finished series Friday Night Lights remember the show for its heartwarming depiction of a small Texas town, Dillon, in love with its high school football program. (For you non sports lovers, the series' name refers to the day and time football games are typically contested at the high school level).
MinorityFran Changing the Game for Minorities in Franchising
As far as the incentives go, there are three main categories that franchisors tend to work with when they're looking to increase access to their systems for minorities. The most popular method used, by far, is to offer discounts on initial franchise fees. The second most popular incentive offered to minorities by franchisors is financing assistance and other discounts to help pay off the sizable franchising fees that new franchisees incur. Finally, in rare instances, franchisors offer minority franchisees administrative and development support above and beyond what they provide to the non-minority franchisees in the system. Here is a list of franchises that have gone the extra mile to reach out to minorities looking to get involved in franchising.