Franchise Opportunities: 3 Tips For Evaluating And Choosing One In Today’s Market
There are hundreds of franchise opportunities today, so how do you choose the right one? As a general guideline, it’s important to remember the ultimate benefits of choosing a franchise, like having a network of support, a proven method of success, and the opportunity to learn from other’s mistakes. Franchise opportunities that make the most of these benefits are often good choices. In this article, we’ll take a look at the top 3 things to ask about for when evaluating a potential franchise opportunity for sale.
It’s natural and healthy for businesses to compete for customers. You should choose a business that you feel confident can stand up against even the toughest rival. However, it’s a different scenario entirely to compete with your own chain for business, and that’s what can happen when franchisors don’t protect territories.
Having a protected territory doesn’t mean that there can’t be any competitors around for miles. Those who buy a Starbucks franchise for sale may open their doors less than 1 mile away from another Starbucks. What matters is that the franchisor should have a proven formula for determining successful territory lines. This is especially important with home based and home services franchises that don’t have a physical location. Service based small business franchise opportunities have a broader reach and often require a larger territory.
Top Notch Training Program:
One of the most important benefits of choosing a franchise opportunity for sale is that you have the advantage of learning from the trials and errors of others. Many new, non-franchise businesses fail within the first 5 years because they don’t have a clear direction and rely on trial and error for establishing business practices.
Before choosing a franchise opportunity for sale, check into its training program. How long is the program? Does it involve on-location and classroom training? Does the company offer continuing education? Training shouldn’t end after you open your franchise. There is always more to learn and experiences to share. Training also gives you the opportunity to gather with a support system of other franchise owners and share your experiences.
Another important benefit of investing in a franchise opportunity for sale is the opportunity to combine resources with a large network of people. Whether that is information or advertising dollars, pooling resources to achieve a more effective result is an essential part of success. Cooperative marketing means that each franchise owner contributes a certain portion of sales toward an advertising pool.
The adage, “the whole is greater than the sum of the parts” absolutely applies to advertising. The amount contributed by each individual wouldn’t amount to very effective advertising coverage. But multiply that amount by the number of franchise owners in the network and soon there is enough for high profile print, radio, and television advertisements.
A protected territory, a top notch training program, and cooperative marketing are three essential elements for success and profitability with a franchise. When you start your franchise search, keep these critical success factors in mind and narrow down your list. After a bit more investigation, you’ll come to realize which franchise opportunity is right for and will soon be on your way to a bright and profitable future!