Choosing a Franchise? Ask These 7 Essential Questions

Dreaming of ditching the 9 to 5 to be your own boss? Before taking the leap into franchise ownership, ask these 7 essential questions to set yourself up for success:

How Will This Franchise Make Money?

The first thing to unpack is the core revenue model. Study the main income streams, standard profit margins, and earnings potential based on unit performance. This helps you realistically forecast your possible cash flows. Know that no business is recession-proof, but some models provide more resilience.

What is the Total Investment Cost?

Do your due diligence to tally the expected franchise fee, setup fees, equipment costs, inventory, deposits, working capital, payroll, insurance, etc. Budget for surprises too because unexpected expenses arise. Only by understanding the complete financial picture can you determine if the investment level and terms work for your situation.

What Support Does the Franchisor Provide?

The franchisor provides the operating system, from site selection expertise to initial training to ongoing assistance across marketing, tech platforms, operations, purchasing, HR, and more. Study the playbook and resources offered to franchisees to determine how much of the heavy lifting is done for you. Thorough support infrastructure can vastly impact your chances of success.

What Will a Typical Week Look Like?

Get clarity into the day-to-day workload expected as an owner-operator. Will this align with your skills and experience? Can you hire staff to scale the model if desired, or does it require your full-time commitment? Make sure your vision of ownership aligns with reality before signing the franchise agreement.

Is This Model Recession Resilient?

Study how this franchise fared across various economic cycles. The most durable concepts provide essential services with lean operations and recurring revenue from multi-channel streams. This cushions the volatility typical of small businesses, granting you stability even in downturns.

How Does This Improve Customers' Lives?

Understand who your end consumer is and how this product or service adds value. Fulfilling target customer needs today and anticipating shifts in the future is key to sustainability. Plus, running a business that makes a positive impact fuels purpose beyond profits.

Does This Align to Who I Am?

The most critical question - does this opportunity check your personal boxes for why you want to own your own business? Will it grant you the autonomy, work-life fit, sense of purpose, and income goals you envision? The best match allows you to maximize your innate strengths while fulfilling your definition of success.

Doing thorough due diligence by asking the right questions allows you to make an informed decision rather than a leap of faith. Be your own best advocate as you take control of your financial future and schedule with franchise ownership.

Got more questions? Let's connect and explore further. Reach out to us today to get the answers you need and begin your path toward franchising.