If you have made up your mind to start franchising, you might be wondering how to select the right franchise. This can often be a tedious process — much like dating — where you have a lot of options but do not know which one to pick. Here is how you should go about picking your franchise:
Step 1: Match Your Interest & StrengthsIf you are unsure about the industry you wish to delve into, take a step back and reconsider where your interests lie. You should ideally delve into an intersection of something you understand well and something you are good at. A red flag to keep in mind is that you should ideally avoid industries that are overcrowded or deserted.
Step 2: Time ConstraintsTo get a good return on investment, you have to be constantly looking to improve your business. This often requires a great deal of time commitment and varies from industry to industry. For example, if you decide to franchise a restaurant, but will not be able to spend time at the site at all, the effectiveness with which your business would operate is likely going to be low. You should ideally be able to visit your place time to time to see how the place is running and what can be done to improve it. Think about the time you will have to devote in the industry of your choice.
Step 3: Reach out to FranchisorsOnce you figure out an industry to delve into, you should reach out to as many franchisors in that industry as you can. Once you have a good amount of franchisors, you should narrow them down by seeing which ones you are interested in. You should also consider how these franchisors help you set up your outlet as well. A franchisor with a good support staff would go a long way in making your investment valuable.
Step 4: Financial Due-DiligenceAs you begin to have more specific options, you need to think about the numbers. Is it really worthwhile investing in this specific company? How much income will you be able to generate? How big an investment would I need to make financially? These are some questions you should address before agreeing to a deal.
The bottom-line is that you should ideally look to franchise in an intersection of something that interests you and something that you understand well. You should keep time and financial commitments in mind before agreeing to anything and always seek to learn more of the industry nuances as you progress.
By the way, if you are thinking about investing in the ‘Food & Beverages’ industry, you’re in luck. SelectDine is a company that provides franchise opportunities in the ‘Food & Beverages’ industry that can help you set up an outlet in the city of your dreams! I would highly recommend consulting them if you wish to delve in the ‘Food & Beverages’ industry.