Financial freedom, sounds amazing, right? Those two words are just one of the many things entrepreneurs hope for when purchasing a franchise. But, before you go making any big purchases for your next big business venture, consider these five things when choosing a franchise.
Return on Investment- How long will it take for you to recover the money you invested?
Conduct research into what gross revenues and profit margins are for your desired franchise business. You can get this information from the company you desire to do business with. All franchise companies are required by the Federal Trade Commission to provide a disclosure document called the Franchise Disclosure Document (FDD). With this you can find information on earnings, costs, expenses, and other services provided by the franchise company.
Experience Required- How knowledgeable do you have to be about the business?
Having experience in your desired franchise varies from business-to-business. While there are some that do require that you have a background in relation to their business, there are others that do not require you to have any prior experience. Check to see if your desired franchise offers ongoing training to keep you going strong in the industry.
Growth- How rapid is the franchise growing?
It’s important to join a healthy business with a strong future. A growing franchise system increases the franchisor’s name and brand recognition. This may help you attract customers, but growth alone doesn’t ensure that franchisees will be successful.
Life balance – Will your new venture dominate your life?
Owning a franchise can be a huge time commitment. Are you ready for that? While some are, others may not be. For retiree’s, this may be a deal breaker. When getting information from your desired franchise, ask how involved you must be to be successful. The last thing a new franchisee wants is to realize that their new business is dominating all of their time, when they expected to be making money while kicking their heels up on vacation.
Complaints – How do people feel about the company?
Check whether consumers or franchisees have filed complaints against the franchise or franchisor with franchise regulators, Better Business Bureaus (BBBs), or local consumer protection agencies in your state or the franchisor’s home state. Too many complaints can hurt your business whether they came from your establishment, or not.
At One Stop Tax Services Inc., we have developed a proven, successful, turn-key system that is duplicable, and when followed, will yield tremendous growth for a franchisee. All franchisees are provided assistance with territory selection, site inspection, software installation, marketing, and so much more through our lasting partnership. For more information, call us at 1-855-408-2937 or sign up for more information here.
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