Get yourself guided properly before handing over your commitment to the franchisor. If you are planning to start a business via franchise, it is always wise to have a thorough research. Buying a franchise of an established brand is rather simple in comparison to setting a whole new individual business. But that doesn’t mean you only have find out one lucrative opportunity, and call directly for the business.
Discovering vital elements such as the franchise criteria [of the brand], market value, profit and loss history, pros and cons of business, reviews and feedbacks of current/ ex franchisees, brings you to a safe platform, than playing a blind card.
There are constant reports swelling in from various research bodies that talk of the growing stamina of franchise industry in India. It surely is inviting new opportunities for small businesses to expand, as well as entrepreneurs to start a business without visiting a risk factor of capital.
However, easy stairs to success also bring scope to glitches, which is certain and avoidable.
Reason to have awareness, before buying a franchise, is to escape phony promises of franchisors. Every sector has their share of flaws. In trying to make fast money, various brands push in fake figures and franchise outlets, to fool investors. For them, a simple opportunity is to tap uninformed aspiring entrepreneurs.
So for those, who are looking ahead in making their business work with established brands, without tripping over suspicious assurances, it is advisable to clear your concerns, to make a firm decision.
– Talk about brand: Do not say yes to all information that franchisor delivers to you. It could be mere lip services. Ask your concerns regarding the brand, even it seems uncomfortable to ask point-blankly. Widen your horizons for research beyond the knowledge of the franchisor, such as history, services, manufacturing and logistic services, via other sources.
– Meet franchisees: In the initial introduction phase, franchisor will take you to the tour of its satisfied franchisees across locations. While getting the upper crust of business, do your own conversation, in the absence of the franchisor. It will surely bring out critical points you need to think about.
– Find out failed franchisees: how many franchisees have been failed to continue with the franchise? What are the reasons? Whether the parent company is struggling with such hitches? Have your analysis comprehend ahead of the deal.
– Have expert opinions: These days there are various expert franchise counsellors to guide new franchisees. They help out in figuring the best opportunity for you with complete details about the brand. It is good to approach the expert counsellor of the field. Or you can talk to any proficient head of the industry. Using your previous business links might help in the start of your new franchise business.
– Avoid astonishing figures: Making franchisees chock with fancy figures of company’s profit graph and market growth can be a trap. Sometimes, observing franchisee with little or no knowledge benefit franchisor, to broadcast their flourishing world of growth. You should not totally rely upon the figure. Once again, the moment demands your own instinct that is fuelled with appropriate knowledge.
Hopefully, your business launching through franchise tie-up does not receive any setback as every business contains its own flaws and strengths. It is pragmatic to determine your own capabilities to work upon the potholes, and digging out the best. However, assuming any worst state to happen after buying franchise, get to know the clause of franchise agreement to recover back from the deal.