This episode is hosted by Henry Lopez and Sara Waskow, owner of FranNet DFW. They partner with aspiring entrepreneurs and individuals interested in becoming business owners. They will work with you to help you determine your ideal franchise opportunity, effectively matching you and your needs with the right fit. Through their free consulting services, they will provide the valuable education, research and guidance necessary to feel truly confident in your decision.

10 Points to Consider for Determining if the Franchise Business Model is Right for You

1. Level of Control: Are you good with established guidelines and procedures you must follow? Assess whether you’re comfortable with this level of structure as opposed to the greater autonomy you’d have in a non-franchise business. Every business is different, with some having more rules and requirements than others, but part of the franchise concept is that each location executes as uniformly as possible to deliver the same experience.
2. Initial Investment: It may require a significant upfront investment, including franchise fees. Compare this to the potential costs of starting a business from scratch or buying an existing non-franchise business.
3. Brand Recognition: One of the advantages may be instant brand recognition. Consider how important this is for you compared to building your own brand from the ground up. Also remember that other franchise unit owners can impact the brand negatively and you have little to no control over this.
4. Support Systems: They typically offer extensive training and support. Evaluate how much you value this support versus the self-reliance needed in a non-franchise model. Also consider if you are willing to be coachable and open to direction being set by the franchisor that you must follow.
5. Speed to Market: These businesses can often be launched more quickly due to their turnkey nature. Determine how important speed to market is for you.
6. Risk Tolerance: These are ideally proven business model, which may reduce risk. Assess your own risk tolerance and how it aligns. Of course, remember that there are no guarantee that any business will be successful.
7. Scalability: There may be the  easier scalability through opening multiple units. Consider your long-term growth plans and how they fit with each business model.
8. Regulatory Compliance: Consider that there are often established procedures for regulatory compliance considerations.
9. Innovation and Adaptability: Changes to products or services usually come from the franchisor. Consider how much you value the ability to innovate and adapt your offerings.
10. Exit Strategy: There may have more stringent conditions for resale or exit. Consider your long-term exit strategy and how it aligns with each business model.

The International Franchise Association emphasizes the importance of self-assessment, stating, “Franchising is not for everyone. Operating a franchise with proven operating systems and built-in support mechanisms requires certain skills and temperaments that not everyone possesses. Conduct a self-assessment to determine if franchising is right for you.”

By evaluating these points, you can better understand whether the franchise business model aligns with your personal preferences, financial situation, and long-term goals, as compared to starting or buying another type of business.

Resources:

• FREE DOWNLOAD: Top 4 Benefits of a Franchise Business

Franchising Episodes

Before you choose this business model and certainly before you sign an Agreement, it’s important that you educate yourself and get the help you need. At a minimum, it’s imperative that you seek the advice of an Attorney to review the Franchise Agreement before you sign it. To help you learn more, we invite you to listen to our archive of Franchise Episodes of The How of Business podcast.