Franchise Opportunity

Written by Linda Alexander
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Are you looking for that perfect franchise opportunity? Many people would like to go into business for themselves but lack the knowledge to run their own companies. In these cases, franchising may make sense. With a franchise, you have less risk for your investment. Franchises offer you a successful management system which you can duplicate as well as a well-known name, giving you an instant customer base. Franchises are quicker to set up than businesses from scratch and they tend to become profitable faster.

One of the biggest benefits to a franchise opportunity is that the name is well-known. Usually, this means customers will instantly recognize your store, and will deal within their comfort zones. They are more likely to choose to stop somewhere they are familiar with, rather than at an unknown establishment.

Customers know what they are getting. They know the quality of the service at your location will be the same as at other locations. If you own a restaurant, they know the menu and why they like it. They are familiar with your system.

What is a Franchise Opportunity?

When you buy into a franchise opportunity, you are leasing the managerial knowledge of how to run the business. If you are able to follow rules and want to lessen your risk, a franchise opportunity might be right for you. If you want to have complete control over your own unique operation, then you might be better off starting a business from scratch.

Another advantage of franchises is that you can usually get good deals on supplies. The franchisor will usually purchase supplies in bulk for the entire chain and pass the savings on to you. Your startup fees usually include training and operations manuals, so you will have a "roadmap" as to how to run the business. You don't get that with a business that is uniquely your own.

Legal Counsel for your Franchise Opportunity

When you have narrowed down your franchise opportunity to one or two that you are interested in, consult an attorney to help you understand the agreements. It is crucial that you know what you are getting into and understand all of the documents you will be signing when you lease the franchise. Ask as many questions as you need to so that you can make an educated decision.

It is also a good idea to talk to as many current franchisees of the company as you can. Get their feedback on the business. Ask them what they would do differently if they had known then what they know now about the franchise opportunity. Look for patterns--if everybody has the same complaint, it is something you should weigh carefully before making any decisions.

Also. talk to people who have closed their franchises and learn why they didn't work out. If each one has a different story, the opportunity might still be a good one for you. If each has a similar story, pay attention to a potential flaw in the system.

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