What Experience Do I Need To Open A Franchise?
A very common question with no easy answer. The kind and amount of experience you need depends on the franchise you’re looking to buy into, of course. However, here are some common themes to help guide your search.
Franchisors are often looking for someone who…
Will fit nicely into their team.
Do you have the same values as the company? Is it a family-owned franchise or faith-based? Many franchisors want to know that the people representing them will have similar core values and approach to life - this reassures them that their brand will be in good hands.
Has a passion for their business.
Most franchise concepts will look to see if you have a passion for what they do or sell. Will you be excited to promote their product? If you’re interested in a senior care franchise, do you have a desire to make a difference in your community? Franchisors will always want to know what it is that attracted you to their brand.
Has similar background experience.
This is definitely not a must for many franchisors out there, but an important one to note. While there are plenty of franchise concepts that require no experience at all, if you have a similar background or work experience, it might make the transition a bit easier. Look for a strong training program offered by the franchisor to bridge this gap.
Has good people skills.
Depending on the franchise, you might be tasked with hiring and training your own team. In addition, people can drive business so attracting customers will be key. You might be able to outsource marketing, or a hiring manager, but it is likely that at least while things are getting off the ground, people skills will come in handy.
Has the capital to run the business.
Money is a first and foremost question in the franchise space. It’s possible to meet and exceed all the points above, but without the initial cash on hand, it will be a nonstarter. However, many franchisors offer in-house or third-party financing so ask what assistance they might provide.
To more specifically understand the experience required to start a franchise, you have to speak to the franchise itself. This should happen early on in conversations, when you and the franchisor are both evaluating whether you’re each a good fit.
A pro tip is to also speak with franchisees who have gone through the process. What skills did they find most useful when launching the franchise? What support did they receive from the franchisor?
There’s no one size fits all answer to this commonly asked question, but this is a good place to start.
Ilana Fried is the Client Services Manager at FranchiseHelp. She’s gathered all these FAQs after speaking to clients for over two years.
5 Tips for Finding the Right Franchise
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:
Choosing Between a Product and a Service Franchise
There are basically two types of businesses that can be offered by an individual. They can offer Products to their customers which are tangible goods meant for the customer's consumption or they can offer them Services which are intangible and work to make the life of the consumer easier and more convenient. With technologies advancing rapidly and the global demands of consumers changing there is a very thin line dividing the service and product segment of the consumers demands. An example of this can be the purchase of a car from an auto dealer. The dealer not only offers the vehicle at a competitive rate but now has to offer different services as well, such as financing options, after-sales services, ready documentation and other non- tangible services. This kind of merging has made it very difficult to draw a clear line as to the service and product industry but for the sake of argument we will consider a theoretical perspective where you have to choose a traditional product franchise or a service franchise.
5 Hot Franchises for 2015
Looking ahead to 2015, here are 5 different franchises that we think are going to growing at an incredibly rapid rate: