5 Tips for Finding the Right Franchise
Contributed by Guidant Financial Group.
So you’ve decided that a franchise is the right path for you? Now comes the exciting part—choosing among hundreds of franchise opportunities. Here are questions to ask yourself to help narrow the field:
1. What captures your interest?
If you’ve always been a gear head, maybe a Jiffy- Lube or Snap-on Tools franchise would be right for you. If you love to travel, it may thrill you to help others with a cruise planning franchise or similar travel-based brand. On the flip side, no matter how great the ROI is, if fast-food makes you queasy, you probably won’t be happy being a burger-and-fries franchisee.
2. Do you want to run a business from home?
Home-based franchises have relatively low start-up costs. Some of the most successful are in the commercial cleaning category (Jan- Pro, System4, and Vanguard are Entrepreneur magazine’s top three home-based franchises for 2013). Tools, lawn care, and travel planning are also great opportunities.
3. Does this product or service have staying power?
Franchises that are hot right now may not be in a decade. Check into recession-proof services (pipes will burst, cars will break down, and people will spend money on their kids and pets no matter what) and franchises that target growing population sectors such as seniors and Latinos.
4. How much do you want to invest?
There are franchise opportunities in nearly every price range from a big- ticket McDonald’s ($1.03M) to home-based, low-startup cost franchises that you can get into for under $10K such as CruiseOne or Jazzercise. Getting a business loan is an option, as is rolling over a retirement account to purchase a franchise. The latter is complex if you want to avoid taxes so it’s best to obtain professional help.
5. Is the franchise a good fit?
When you’ve got your options narrowed to one or two, you’ll want to do some serious homework on the franchisors including talking to current and former franchisees, carefully reading over the Franchise Disclosure Document looking for red flags, hidden fees, and any history of litigation. It may also be prudent to seek the help of a franchise consultant—their services are typically free and they know the industry well.
Once you’ve done your soul-searching about the kind of business you want, narrowed the field, done due diligence on all the details and finally made your decision, take a deep breath and step into your future with confidence.
or visit guidantfinancial.com
What Constitutes Trademark Infringement?
The Best Home-Based Franchise Opportunities in the USA
Other major advantages of home-based franchise opportunities are low start-up costs and overhead expenses.The initial investment required for an at-home franchise is typically much lower than a conventional franchise, often in the $15,000-$30,000 range. Some home-based businesses can be started with just $10,000. Since franchisees do not need commercial space, work-from-home franchises also have low overhead costs and require little to no inventory.
Why Doesn't Chipotle Franchise?
I’m a huge Chipotle fan and I’m not ashamed to admit it. I love a big fat carnitas burrito with every possible topping (is that even the right word for what you put on a burrito?) on it, especially guac. But every time I’m outside of New York I wonder why there aren’t more Chipotles out there. Sure there are a bunch (at the end of 2014 there were more than 1,700) but their numbers pale in comparison to other “fast food” giants like McDonald’s or Subway (they have more than 36,000 and 43,500 restaurants respectively). So why hasn’t Chipotle followed suit and gone the obviously successful franchising route?