You’ve made the decision that a franchise is the best way to secure a future for you and your family. You’ve done research, and you think you have what it takes. Now, you’re ready to start shopping for the top franchises that you want. While searching for profitable franchises, make sure to keep these five things in mind.
When you begin your exploration, look for a low cost franchise that is the right fit for you. You’ll want a franchisor that shares your passion, ambition and work ethic. Likewise, a franchisor may have an idea of the kinds of qualities that they want in a franchisee. You may find an actual list of requirements that explains what they are looking for, or you might be able to research existing franchises to see if there are commonalities between you and them.
Not all franchise companies are created equal. In some situations, a franchisor may be more interested in selling businesses than building profitable franchises that provide quality services to consumers. While the franchise sale is an important part of the franchising model, if a franchisor neglects to put time and effort into quality, your business could suffer. When customers are dissatisfied, they often tell others. Before you know it, the brand’s reputation suffers and demand decreases. The best franchises care about what they’re putting out there. If you both believe in the business and are enthusiastic about it, the chances of success greatly increase.
For the low cost franchise that you’re interested in, you’ll need to do your due diligence. The top franchises should be able to provide you with some helpful information, but you might also be able to find out about franchisee success rates or if there is any past or pending litigation. Moreover, see if you can contact existing franchisees; they may able to provide you with vital information on what it’s like to be a part of the franchisor’s community. A good franchisor-franchisee relationship is valuable in nurturing profitable franchises.
Start looking at costs. If you can, calculate your net worth. This is because some of the top franchises may have thresholds. Make sure that you know what your initial costs will be and research your finance options. You may be able to secure a conventional loan from a bank, or you might be able to qualify for financing through the U.S. Small Business Administration. Additionally, the low cost franchise that you choose might have incentives or provide assistance with financing. In any event, it’s a good idea to start collecting financial documentation so that it’s ready to go in case companies ask for the information.
The best franchises have proven business models and shortened learning curves. This is because profitable franchises have the resources necessary to effectively develop the brand. For example, Best in Class Education Center believes in setting up a franchisee for success with corporate training, financing and marketing help, operational tools, and assistance in site selection. There are also incentives for current and former educators and veterans. For these reasons and more, Best in Class has been named one of the top franchises of 2017.
Overall, just remember - you want a franchisor that believes in you and the future you want to build.