Questions To Ask Yourself Before Becoming a Franchise Owner

If you’re thinking about becoming a franchisee, you may consider what questions to ask yourself (and others) to help guide your decision. Starting any business is a commitment, so you want to consider all aspects before making an investment. As with any business endeavor, working with a business advisor can be beneficial to researching the right path for you. Here are key questions to consider as you explore becoming a franchisee.

  1. Do you want to manage and operate a business — regardless of whether it is an independent business or a franchise?
  1. Do you always have to be right? Will you be able to follow the directions of the franchisor even when you think you know a better way? Are you prepared to accept coaching and advice from the franchisor on how you operate your franchise location?
  1. Do you have the need to experiment with your products and services? If you happen to like well-done hamburgers, will you be satisfied if the franchisor’s recipe requires them to be medium-rare? If the franchisor’s concept is restricted to customers coming to your location to make a purchase, do you have a burning desire to buy a truck and make deliveries to customer’s homes — even if that is not part of the franchisor’s system?
  1. Do you think of yourself as an advertising genius? If the franchisor provides you with advertising material, are you going to want to change it all the time? Do you think that your market is different from everyone else’s and are you going to expect the franchisor to modify its franchise brand message just to suit your preferences?
  1. Do you play well on a team? Other franchisees will rely upon you to offer to the consumer a consistent level of service, product quality and brand consistency. You are going to have to work with others in the franchise system in making decisions. All of these decisions will have some impact on your business, and you will often be required to follow the majority’s determinations, even when you personally do not agree. Will you be able to do this?
  1. Franchisors are going to want you to share with them information about your franchise business, and sometimes the information they request may seem very personal to you. They will want you to send them reports and even may require copies of your tax returns. Field staff will be making periodic visits to your locations, asking you questions and wanting to look at some of your records. Even when you understand that the reason they need the information is to help you operate your business better, are you prepared to provide them the information and listen to their advice? If you can’t honestly see yourself happy with someone else setting the standards for your business and being responsible to meet their standards, then perhaps you should reconsider becoming a franchisee of a strong franchise system. You simply won’t be happy in the long run with your loss of control. However, if after seriously pondering the questions above, you still think you would like to be a franchisee, here are some more questions to ask yourself.
  1. Why do you want to be a franchisee?
  1. How much income do you need to maintain your current standard of living?
  1. How many hours a day are you comfortable working?
  1. What skills can you bring to a franchise business?
  1. What types of businesses do you think you would like to operate? Is it retail, service, restaurants, etc.?
  1. What types of businesses do you think you would not want to own —no matter how much money you can make?
  1. How much cash do you have to invest in a franchise business? How much money can you borrow if you needed to?
  1. Is your family supportive of your becoming a franchisee? Do you have a network of supportive friends and colleagues to rely on when you need emotional support?
  1. Do you have a network of professional advisors to help you evaluate a franchise opportunity?

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