Buying a franchise: Where do I start?

Written on the 25 October 2013

Buying into a franchise carries significantly less risk than starting your own business from scratch, but its still essential to do your research and choose a franchise that matches your skills, interests and lifestyle.

Why franchise?

Before you look into particular franchises, learning about the franchising sector in general is a useful starting point. Some of the unique advantages of franchising over starting your own business include:

• Reduced risk and investment
• Worrking with an established brand and systems
• Access to an existing client base
• Ongoing training and support services

Researching franchises

Joining a franchise isnt a decision to be made lightly, and the more questions you ask your potential franchisor, the more confidence you will have that youre making the right decision. Some examples of key questions to ask your franchisor include:

• How many years has the franchise operated?
• How many franchise units do they have?
• Is training supplied?
• What level of ongoing support is available?

An established franchise with many years behind them is likely to be more appealing than a newer, less experienced firm, as longevity tends to reflect a track record of success. You should also research the franchises business model and growth strategies for the future to get a clearer understanding of what to expect in terms of profitability.

Franchise fees

Start-up costs tend to be significantly less for franchises than would be involved in getting your own business off the ground, but some level of investment will still be required. Franchisors and representatives will be able to provide precise details of initial fees, pre-opening fees and other overheads, as well as financial support options available. This will help you determine whether the franchise will be a worthwhile investment.

Support systems

One of the most appealing aspects of franchising for many people is the support offered by the franchisor, though the level of assistance available can vary. If youre new to the business world or just want the confidence that youll be part of a team that will help you deal with day-to-day challenges, look for a franchise that offers:

• Extensive training programs
• Operational advice
• Assistance with marketing strategies
• Ongoing support

Contact Snap to find out more about buying into an established franchise with full training and support.