Is Franchising Right for You? 5 Questions to Ask Before Buying a Franchise
Being presented with franchise opportunities can be an exciting and challenging experience. Exciting because you could very well be setting yourself up for financial success and freedom. Challenging because you have to make sure to pick the right franchise brand to hopefully ensure that success and freedom. For those reasons, it’s important to do your due diligence before finding a franchise for sale and entering into a contract. Here are five crucial questions to ask as you’re on the hunt!
1. Do I Fit the Franchisor’s Criteria and Is It Right for Me?
Often times, a franchisor will require a franchisee to have specific experience or personality traits. Before doing tons of work on various franchise opportunities, make sure you fit the bill. Additionally, you’ll want a business to play to your strengths. For example, if you have no real interest in the food industry, it’s probably not the best idea to buy a restaurant franchise.
2. Is It Financially Viable for Me?
Franchisors have different financial requirements. Find out if there are minimum liquid capital and net worth prerequisites. Moreover, investigate what startup costs there may be and if there are ongoing fees and royalties. It’s important to know how much of an investment you need to make and how long it will take before the business is profitable.
3. What Kind of Support Does the Franchisor Provide?
Some franchise opportunities are much better than others because of the support the franchisors provide. There are several ways in which a franchisor may help their prospective and existing franchisees:
- Connections to lenders
- Financial incentives
- Training and operations aid
- Marketing and PR assistance
- Help with finding a location and lease negotiations
4. What Is the History of Franchise Brand?
Obviously, finding a franchise for sale and jumping in before knowing the brand’s history is not the best idea. You’ll want to seek information on factors such as financial strength, litigation history, how disputes are settled, and what the closure/failure rate is. Much of this information can be found in the Franchise Disclosure Document that a franchisor is legally obligated to provide to prospective franchisees.
5. What Is It Like Being a Franchisee?
Franchise opportunities are not really much of an opportunity if franchisees are not set up for success. It may behoove you to ask about getting in touch with existing franchisees to see what a relationship with the franchisor is like. You might even want to find out if you can spend some time in one of the existing locations. Furthermore, ask the franchisor about issues like territory protection and what a franchisee typically earns.
Best in Class is a supplemental education franchise with a long history of success. For over two decades, we’ve been providing entrepreneurs with incredible franchise opportunities. We succeed because we turn a real passion for community and education into thriving learning centers that help thousands of kids flourish in school and life in general. With 50 locations all over the United States, our brand has both recognition and a wide reach. We also provide franchisees with an immense amount of support, so much so that many choose to enter into multi-unit franchise ownerships.
We’re currently looking for motivated individuals with an enthusiasm for education! In addition, a preferred candidate will also have the following:
- Business and/or management experience
- Bachelor’s Degree
- Experience in Education or Child Care
If you think Best in Class Education Center is right for you, get in touch to find out about our franchise opportunities!