When choosing the best franchises
to buy, there's a few key things to consider when deciding on the best
franchise opportunity that's right for you and your family. If this is
your first business or franchise that you're looking to own, this
information will flat out be huge. If this isn't your first rodeo, you
will still gain a ton of valuable insight.
The first thing to consider when evaluating franchises to buy is the brand and reputation of the organisation. Obviously McDonald's and Subway franchises are two of the most popular franchises in the world and with that comes great branding. That would give you an advantage.
the flip side, if it's a company that isn't as widely known as the two
previously stated, then my recommendation would be to evaluate the
leadership of the company. Find out what their track record is. What
you're really looking for is integrity and a commitment to the success
of it's franchisees, not the commitment to fattening their wallets.
The next consideration in finding the best
to buy would be the territory restrictions. How big are they? How are
they defined? Is there a time period where territories can be
re-negotiated? You want to find out everything about what restrictions
the franchisor is putting on your business. This one area alone could
literally make or break your business. If you can get a franchise with
no territory restrictions, then that would be great. A lot of online fall in that category because there's no way to restrict the internet.
Another consideration in determining the best franchise to buy is the royalty fees associated with that franchise. Most franchises
fall in the 2%-10% range of royalty fees that are paid on gross sales,
not net profits. It's not really a secret that sometimes you must own a
to really make good money, and paying royalty fees contributes to this
point. A bad royalty agreement can really sting especially since you
still have to pay all other expenses after the royalties have been taken
off the top. Some franchises have minimum requirements no matter how much money is produced in the business.
The last consideration to discuss in finding the best franchises
to buy is the cost to entry, especially if it involves having to get
some real estate and leasing large equipment. The huge expense of rent
and equipment leasing can eat up a big chunk of the profits, if there
are any left at all. Some franchises
that is known of have to sell 5000 units in 1 month just to pay the rent,
which doesn't include the utilities and all other associated costs.
That can be challenging, depending on the business. Home-based franchise opportunity are really becoming popular because they don't have the problems of rent and equipment leasing.
Bottom line is that finding the best franchises
to buy can be a bit confusing with all the choices that you have, but
the best advice is to find a franchise opportunity that you are
passionate about and that has a lot of appealing factors to make you as
successful as possible.