We will agree that every entrepreneur takes risks and that the opposite would not be the case. However, it is often mistakenly considered that the entrepreneur is much more so the greater the risk he takes with his investment and nothing is further from the truth.
The entrepreneur will always try to move his business forward and achieve an adequate return, reducing the risk that is always involved to the maximum. And if this is the case, and a franchise is clear that it will significantly reduce the risk by offering a brand, experience and management support, starting a franchise is a great option in any new business venture.
But what are the keys to joining a franchise chain? Here we explain these 10:
1. Learn about how franchises work
Acquiring the condition of a franchisee entrepreneur will require prior knowledge of the characteristics and peculiarities of this type of agreement and the obligations it will represent in the operation and management of our business.
Attending a seminar, registering for an advanced course or simply reading a book on the subject will provide you with extensive prior information.
2. Self-assessment and verification of your qualities and skills
Every businessman who considers franchising as a system for the creation and start up of a new business, will have to carefully meditate on his decision and self-analyse his personal aptitudes, motivations, capacities and degree of professional qualification. Be sincere in your answers to this preliminary evaluation and decide accordingly.
3. Consider your economic capacity to undertake the project
The acquisition of a franchise, like the start of any business, will mean that the future franchisee will have to face investments that can be significant, which will require the availability of the necessary funds. Without a doubt, this factor will limit the possible business alternatives that you can choose from and will guide your process of seeking financing.
4. Select a sector of activity and identify alternatives
There are many sectors that use franchising as a formula for business expansion and, in short, there are many possibilities for selection. It will be necessary to specify the segment of activity in which you are interested in developing a business and with which you will find yourself completely identified.
A franchise portal is what you will need to identify your sector and look for what you need to open a franchise: economic franchises, profitable franchises, cheap franchises, successful franchises, etc.
5. Get detailed information
The regulations currently in force protect the information rights of all potential franchisees.
Knowing the type of information that you can request from the franchiser will become an essential aspect in order to choose the most suitable alternative. Exercise your right and ask for a detailed information dossier that you can complement with some work meetings and visits to establishments in the network.
6. Analyze the different options contemplated
For each of the business alternatives you would have selected in the activity sector of your interest, you will have to start an analysis on which to base your decision. To do this you will need to analyse the market, the business concept, the franchiser’s experience and the type of association proposed.
Each one of these sections must be studied with amplitude and rigour, without haste and in a very methodical way.
7. Make an objective analysis of the project
The ideal is to get specialized advice that will surely expand your information. This analysis will be convenient to specify it in legal, conceptual and, of course, economic aspects. Only professional advice will allow you the scope and details of a study that should lead you to take the most appropriate decision.
It is true that hiring the services of a professional consultant will involve a cost (usually not high), but it is also true that it will be final to assign this item when you are ready to make an investment, whose viability you need to check in advance with absolute objectivity.
8. Compare different business proposals
Ask your franchise consultant for a form that allows you to make a comparative study of the various business alternatives you are considering. It is usually a real selection script and a road map in your conversations with the head office with which you can independently evaluate each and every one of the facets that you will necessarily have to consider when asking for information and making a comparative study of the business proposals that you are contemplating.
9. Verify and expand your information by talking to other franchisees
Talking to current franchisees of the ensign of our interest will allow you to obtain additional information of great value that surely you will not find any informative document that the franchisor can provide us with, at the end of the day, a party interested in closing the operation. This will also help you to verify the veracity and solvency of the project proposed.
10. Signing the contract
Do not forget that the franchise is a contract, so it is important that you have the intervention of a legal service, if possible a lawyer specialized in franchises, who will advise you during the discussions with the headquarters and will be present at the signing of the contract.