For entrepreneurs who want to start a business but do not want to create one from scratch, buying a franchise would be a great choice. Theoretically speaking, buying a franchise would mean you are paying to acquire a business model and a system that works. This means pricing, branding and marketing are covered by your franchisor. While it’s true that franchising could give you the success you have been wishing for, there are some things you need to remember before you invest in a franchise business.
Here are three factors you need to keep in mind before you buy a franchise.
When you a buy a franchise, you are actually buying their tested business model. However, if their business model does not have a proven system that works, then you’re only wasting money. Having a system in place should be part of the deal. This system should cover everything from marketing to payroll. You also need to ask if they provide training otherwise, you’ll be left figuring out a way to create a system on your own, which for us, defeats the purpose of a franchise. The system should provide effective and intuitive franchising management guidance and assistance to all franchise partners.
It is important you study how franchisors treat their franchise partners so you will know if it’s the kind of business you want to be in. This is also a way to gauge if it is the right franchise for you. How can you do this? Do your research and get in contact with the company’s first group of franchise partners and ask them about their experiences with the business. Keep in mind that once you sign a contract, it would be very expensive to back out, if that is even an option. As early as now, do your research and find out how they treat their franchise partners.
Unlike starting your very own business from scratch where all the capital you invest will be channeled towards operations, in franchising, a huge chunk of your initial capital will go straight to your franchisor to cover for fees intended for licensing rights, equipment and training to name a few. Before you jump right in, ask your franchisor what will they provide in exchange for the franchise fee they require. Ask what’s included and what’s not. It is also important that you ask for a time frame to know when you will be able to earn your expenses back. This will help you determine if it is going to be a sound investment.
If you are currently looking for a business that has the potential to make you successful then HydroKleen is a wonderful franchise opportunity for you. We can promise you that we have a successful business model with proven systems in place. We also treat our franchise partners as family because we believe that their success is our success as well. And more importantly, our business model is built to create success for you so if you’re asking if it’s a sound investment, ask our franchise partners and they will tell you the truth about us.