Starting a franchise location can be an equally exciting and nerve racking experience. It is not uncommon to have questions before deciding whether or not you want to begin ownership. Here is a list of five questions that potential franchisees should ask themselves before deciding on their ownership.
- What kind of support will I receive when I first open this franchise store? This is probably the biggest questions any franchisee needs to ask. One of the biggest reasons for owning a franchise is that you get the support and backing from an established brand. It is important to understand how the franchise you are investing in well help in terms of marketing and branding. Finding a franchise that offers marketing tools such signage, social media advertising, search engine optimization, etc. is always necessary. In addition, it’s essential to make sure that the franchise you are interested in provides proper training when opening. A good pre-written manual can help an owner with his or her franchise when they first open it. Also, making sure that the franchise provides operational and technical training with the franchise’s sales and service is an absolute must.
- How do I know what franchise to invest in for maximum return? Any potential owner of a franchise location should always be concerned with whether or not their franchise has the reputation of seeing a positive margin in their first year. Searching for a brand that attracts all customers in your franchise’s industry should be thoroughly researched. A potential owner should always consider the quality of service and products that a franchise provides in order to keep customers coming back. If one franchise might be cheaper than the other to invest in, then that does not give a good reason to choose taking ownership. The proper research will produce the highest return in the long-run.
- How much capital do I need to get started? It is important to always to stick to your budget before investing in a franchise. The worst thing an owner can do is go in over their hand and have to play catchup with financing. On average, an owner should invest 15% of their personal net worth before buying a franchise. So if an owner’s worth is $400,000, then $60,000 is what would be needed to safely finance your start
- How stable is the franchise? Owners want to know whether or not others are investing in the franchise. If a franchise is not expanding across the nation/globe then a potential owner will most likely turn down the decision. It is beneficial to find a sturdy industry that is expected to always receive attention from the public. As an owner, paying attention to whether or not your franchise is recession proof should be your number one concern before investing.
- What should I look for in a franchise’s FDD (Franchise Disclosure Document? Owners should know what they are getting into in terms of legality before becoming a part of the franchise. When going over the FDD, consider the restrictions that the franchise might have, and in addition other important aspects such as financing, trademarking and the business experience of the executives at the franchise. It is key to find a FDD that is fair and easy to read. A franchise should make it easy for potential owners to understand their company.
Tint World’s history of success is one reason why owners choose our business. We are a top 200 franchise company and we are the best in the business when it comes to automotive styling and customer service. At Tint World®, we want all potential owners to remove any doubt about how quality our service really is. In 2015, Tint World® opened up 10 new stores. The growth rate at Tint World® has been exceptional and our franchise is rapidly expanding across the nation and other parts of the world. Franchise ownership can be a fun and enjoyable opportunity. If you have any interest in starting a new Tint World® location or any other additional questions, contact us today.