If you are looking to make it big in the entrepreneurial world, but find the idea of starting from scratch to be a bit intimidating, you are not alone. Many successful business owners have chosen to skip over inventing a company from the ground up. Instead they bought a franchise.
Franchising is an arrangement between two parties where the franchiser grants the franchisee the right to its trademark and business system to produce and market a good or service. Franchisees purchase a franchise, and in exchange receive name recognition, trusted products, an up and running building, detailed training on how to run the business, experienced employees and advertising help. They also often carry the benefits of incorporating and have a register agent service in place, saving the franchisee the effort of going through the process.
Purchasing a franchise instead of creating an all new company takes some of the risk out of running an organization. You have probably been in a number of franchises before — think McDonald's, or the UPS Store. Imagine buying such a business, one that consumers already know, with a big name and lots of funding behind it. The franchiser's experience, alongside the many other franchisees who have already bought into the corporation, can help you get a running start on your entrepreneurial dreams.
If you've decided buying a franchise might be the right decision for you, here are two tips to keep in mind:
Narrow it down: Investigate the numerous industries that offer franchising opportunities. Look for markets with growth potential, and then compare that to your geographic area of choice. Will a Subway be successful in your neck of the woods? Make sure to contact franchise companies and ask them for information.
Ask the right questions: Talking to current franchisees is a great way to understand what you might be getting in to. Ask how the franchiser helps in getting new franchises off the ground, and what kind of problems new owners encountered.