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Sunday, October 15, 2006
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Cuppy's Coffee & More Franchise
08/09/2006 - How To Pick a Winning Franchise
How To Pick a Winning Franchise
There are so many important factors to consider when it comes to franchising. If you are thinking about buying into a franchise, you must invest the time to research everything you need to know. You want to make sure you are investing your money in a smart franchise that works for you. This is not always an easy process, but it’s important to do your research and consider all of your options.
Here are some things you need to consider if you are thinking stepping into the world of franchising.
A. Understand all the fees.
Have you properly researched all the fees involved with your franchise? Are there continual franchise fees, and will you be able to reasonably afford these? Do you understand everything you will have to purchase through the company? Has everything been explained to you in a matter that you understand?
A good franchisor wants you to be successful. The franchisor you choose should be able to review all the costs associated with the business and be able to provide you with the answers you seek. This includes everything from paying your employees, to working capital, to your start up inventory.
B. Look for a franchise that appeals to your interests.
It’s best to pick a business that best matches what you like to do. Also think about the kinds of things that are important to you. You may want to work in the food service industry, but you don’t want to have a lot of employees. This would lead you to a business that promotes food service with a low overhead. Perhaps a
coffee drive thru
or a kiosk stand in the mall. Maybe you want something unique, such as a
popcorn stand
.
Just remember that you will work closely with your business, or at least the initial set up of you business. Do you want a large staff? Do you want to work with goods that don’t spoil? These are all things that you should consider when picking a franchise.
C. A proven system.
A good franchise will be able to give you information on their proven system. You need to talk to other franchisees and see what they have to say about the business. Talk to more than just one person to get a variety of feedback. Have you been invited to the corporate headquarters to see how they system works and is enforced? Seeing is believing, and a good franchise will want to show you everything they have to offer.
D. Brand and Name Recognition
Successful franchises
are successful because they have a strong name. Research the companies you are interested in to see that they have the
purchasing power
that means better discounts for their franchisees. Does the brand carry all of the components needed to carry your business? Does it have the supplies associated with its name?
E. An effective education and training program.
Does the franchise you want to work with provide an adequate
training program
? Will you be supplied with appropriate manuals, handbooks and educational material? It’s important to know that you will have the training material you need as well as the support to operate your business to its full potential.
If you follow these steps, and do your research, you will be on the right path to choosing a franchise that works for you.
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