Purchasing a Franchise

When you want to make a large purchase, do you jump at the first chance to buy it, or do you take time to consider your options? Do you take the brand, quality, financial information, and other aspects into consideration when buying a car or getting a mortgage? 

Purchasing a franchise is no different..  If you are thinking about business ownership, I encourage you to weigh the option of starting your own versus buying a franchise.  Be sure to check out “Should I buy a franchise?”  and Why Consider a Franchise? 

Franchise ownership is a great way to jumpstart a successful career as an entrepreneur.  The structure franchises provide makes this a particularly smart move if you are transitioning from corporate America to being your own boss. You get the opportunity to run a business while having guidance and support from an already established company and a network of people who can provide you with advice as you need it. 

When looking into buying a franchise and becoming a franchisee, there are four things I encourage you to consider carefully. Just because a franchise has a big name and a decent price point doesn’t mean you should jump on that one right away. 

Take time and go over all your options, read the fine print and fully understand the pros, and cons.Need a place to start? Here are a few things to be aware of and consider.

Commitment

When choosing to become a franchisee, you need to know how much time you are personally going to be investing in the business. Does the franchise run itself with you as the overseer, or are you in the trenches every day keeping the company afloat? 

In terms of commitment, what is the franchisor expecting from you? What do they want to see their franchisees do in the business, and what guidelines will you be expected to follow exclusively? 

Track Record

You aren’t just investing in a business; you are investing in the franchisor as well. Therefore, it’s essential to do due diligence into the history of the business and the person who will ultimately be your “boss.” 

How many other franchises has your boss been involved in? Were they successful? What is their background and experience? 

How long has the franchise been in business, how is the brand viewed in the public eye, and have there been any scandals or issues in the past? 

Financial Situation

How much does it cost to purchase a franchise? What are you investing and what will you be given in return? Is the franchise location you’re buying successful? How many locations are nearby, and how successful are they?

Another important question to ask is what the financial situation is?

Ask to look at the financial records and information from the business. Get a good understanding of the accounts and if they have revenue predictions for the future. Have they met financial goals? How much debt is that specific franchise location in, if any? It is also worth taking a look at the overall financial health of the entire franchise. 

Training and Leadership

Franchises were built to mirror the original business and allow people to run them according to company-wide standards. 

As a future franchisee, it’s crucial to know what leadership and guidance you will have. 

All franchises have different training and leadership styles. How in-depth is the training? Will they lay everything out for you and give you the right tools and resources to have a successful franchise? 

Does your leadership style mesh with the ideals of the company? If you find yourself battling to provide the right leadership style, that franchise might not be for you. 

Let MVision Be Your Guide in Purchasing a Franchise

At the end of the day, finding a franchise that works for you is more important than the name on the door. You want to find joy and success in your business, not stress and dread. 

Here at MVision Franchising, we have curated the largest network of franchises and franchise start-ups in the United States. We work with successful business owners, franchisors, and franchisees every day.  Our unique background enables us to work with you to match you with the franchise you will be most successful with and gives you the support and resources you need to be a successful franchisee and business owner. 

Want more resources? Review our articles like “How much does it cost to buy a franchise? for more insight! 

Schedule a discovery call with our team to learn more.