Acquiring a franchise instead of starting your own business reduces risk and increases the probability of success for your business.
More and more people are looking for ways to have better control of their lives and to increase their income. Employees are slowly discovering that companies, whether small, medium or large, are not a “paradise” of mutual loyalty: our work lacks security, benefits are often inconsistent, not proportional to efforts or income and do not “focus on the family.” Around the world there are increasing numbers of people who reaslise that being an employee is no longer appealing. At the same time, uncertainty about retirement funds and pension systems, particularly in the EU, adds another factor to this insecurity, especially for those over 55.
Couple this with the fact that many people are not ready to go it totally alone and start their own business. Franchises are an excellent alternative with innumerable benefits:
- Proven business model
- Ongoing training and support, with a fast learning curve
- Proven marketing and advertising programs
- Faster break-even point and return on investment
- Access to franchise partners network to share and adopt best practices.
First conduct a good evaluation of franchises before investing!
There are different types of people interested in acquiring a franchise:
- Employees who want additional income to improve their lifestyle.
- Employees who want to be independent to obtain a better quality of life and control over their future.
- Those over 45 years of age who are finding it hard to get a good job and who may receive an inadequate pension in the future.
- Investors with their own business or other franchises seeking diversification.
No matter your profile and interest in a franchise, it’s most important to make the right decision and make a prudent investment in your future.
Points to consider in evaluating a franchise:
- o The franchisor must have all support areas available for the franchise network: Training, Operations, Marketing, IT and Management.
- Transparency in franchise acquisition and operating costs.
- The franchise must have an evaluation process of approximately 6-10 weeks.
- The franchisor must offer the opportunity to speak with franchise owners, so that the interested person can check the information received regarding the franchise, this is the “Validation” stage.
- Use a Franchise Consultant to help you with your research and decision-making process.
- It must have a Marketing and Advertising strategy.
Franchisors look for the best candidates when awarding the rights to a franchisee
A person interested in acquiring a franchise must go through a process similar to applying for a job as a Manager or General Manager. A good franchisor interviews and evaluates those interested in its franchise to make sure they have what it takes to be a good franchise owner. If they pass, they are given the right to the franchise. It´s a selection and approval process.
Franchisors must be interested in the success of franchise owners because they want to obtain earnings from their franchises over time. In other words, the more benefits generated by franchise owners and the longer they continue, the more earnings they will produce for them. At the same time, the cost of the franchise or initial franchise fee only covers the training of new owners, giving them access to the systems, the right to use the brand, manuals, teaching know-how and providing all the support and assistance needed to start up the business.
The following are some of the characteristics that franchisors seek in new franchise owners:
– That they can follow a process
– Ability to make decisions
– Entrepreneurial abilities
– That they are committed self-starters
– That they are self-disciplined, self-managers
– That they are problem solvers
It is important that they demonstrate these qualities during franchise research stage. Otherwise, it is unlikely that the franchisor will want to award the franchise to the candidate.