How to Search for the Perfect Franchise Partner
You have finally decided to take the plunge and enter into a franchise or business opportunity. You have critically assessed your personal and professional skills and you feel you have the necessary requirements to set up and operate your own business. Now for the hard part! Perhaps one of the most vital aspects in the franchise process is deciding what franchise system you want to become part of. The following points should give you some basic points to help you choose the perfect franchise partner for you.
1. Define Your Search
The first step in searching for the right franchise opportunity is to research the franchise industry from top to bottom. Considering there are over 1500 franchise opportunities from which you can choose from, this can be the most difficult step. However, if you narrow your search by assessing your personal interests according to the requirements of a particular franchise system, then you are sure to find the right franchise partner for you.
You would be surprised how many people choose a franchise for its estimated financial earnings, rather than if it interests them on a personal level. You are more likely to succeed as a franchisee if the franchise relates to your personal interests.
2. Search Relevant Franchise Sources
After narrowing your research to a particular franchise category, it is now necessary for you to research this industry in a methodical fashion. You must research this industry and be informed of every element relating to this specific industry, form location, training, costs and financial obligations to staffing, HR, and media and PR campaigns. In order for your research to be effective, the following list of websites, directories, magazines and exhibitions is provided.
- Franchise Websites
- Franchise Magazines and Newspapers
- Franchise Exhibitions, Seminars and Conferences
There are thousands of websites dedicated to providing you with information relating to the Franchise industry, which will provide you with the most relevant information relating to your area of interest. Simply typing the word "pizza franchises" into Google or Yahoo will reveal the top results for your franchise sector. However, the following websites are worth singling out:
http://www.franchise.org/ International Franchise Association (IFA)
http://www.franchisedirect.com Franchise Direct
Subscribe to relevant business and franchise magazines that are available in retail or on-line. Also regularly read the Financial Times for their business supplement or other relevant newspapers for their business sections. Most magazines available on-line are free:
http://www.businessfranchise.com (Business Magazine)
http://www.entrepreneur.com (Entrepreneur Magazine)
http://www.franchisetimes.com (Franchise Times Magazine)
Attending a franchise exhibition in your local area can be a great way of meeting potential franchisors and finding out key information relating to your franchise area of interest. To find out when the next exhibition is scheduled for your area, contact either the International Franchise Association or Franchise Direct Information Center for a list of relevant exhibitions, dates and times for 2007/2008.
3. How relevant is your previous work experience?
Your past work experience is key in helping you choose the right franchise partner or franchise opportunity. For example if you held a position as a manager in a retail store for a number of year's, then not only do you have the necessary business and/or management skills to operate a business venture on your own, but you should also consider buying into the retail franchise industry. Similarly if you are a stay-at-home mom or dad, then you might consider a part-time franchise opportunity working from home. It is essential you utilize past skills to help you succeed in the long term.
4. Assess Your Financial Costs and Budget Accordingly
Perhaps one of the most monotonous or arduous tasks is calculating your budget costs for buying into a franchise opportunity. If this seems a daunting task, the best advice would be to consult a financial advisor within an institution such as your local bank, and ask them to draw up a budgetary plan for your business venture.
Finally, do you have what it takes?
Attitude
Attitude is defined here as a positive connotation for a consistent and pro-active approach to being in business for yourself. This means that you have a positive outlook and the necessary skills to succeed. Do you have the right "attitude"?
Capital
Before any interview with a potential franchise partner you must be certain you have the required capital in place before the interview even starts! A franchisor will expect an initial fee to be paid on signing a contract, and this is generally calculated as 10% of the franchisee's start up costs. Make sure you have a legal or financial expert analyze all fees and accounts before signing a franchise agreement.
All Round Skills
What skills and experience can you bring to the franchise agreement or opportunity? Be aware of your personal and professional skills such as leadership, organizational qualities, communication skills and managerial skills. Other abilities include time management, reliability, efficiency, motivational qualities.
To sum up, the above points should guide you in the right direction in deciding what franchise opportunity is right for you. However, it is certainly not an exhaustive list by any means! Here are some bullet points for where you should be after choosing a franchise opportunity.
So what are you waiting for?!
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