Embarking down the path of franchise ownership will change your life. It can also be daunting. With over 4,000 franchise concepts available and 759,236 franchise locations out there, how can you go about choosing the one that fits your personality, wants, business style, and support requirements?
There are a few things you need to consider when trying to select a particular franchise. Ultimately your success will depend on how well you work within the franchisor's system and how the franchise fits within your intended lifestyle.
Do I Work In or On the Best Franchise for Me?
The best franchise for you could be one that you spend time at every day engaging with your customers, doing the business of your unit, and helping manage every aspect of the day-to-day at a single location. This would be working "in" your business.
Others may find it more rewarding to work "on" their business. Instead of being in the trenches, they focus on the back office work and larger picture initiatives. This will trend from hiring and training to ordering and expanding. This style of ownership is ideal for multi-unit owners.
Initially, you may find yourself working "in" your business and as you expand, there might be a shift to "on" the business. Many franchisees are recent corporate executives trying to control their own financial future and business destiny; they may find working on the business more fitting. Others even keep their corporate jobs while transitioning to franchise ownership. These owners have to work "on" their businesses because they just don't have the time to spend on the floor or pounding the pavement each day.
Is My Best Franchise Semi-Absentee or Full-Time?
The experience of giving up your corporate job and starting a franchise can be scary (but Pete successfully did it). It is hard to leave the salary and security behind. That is why many candidates look at semi-absentee franchise models.
This model allows a franchisee to maintain their current career and put ten to fifteen hours a week into their franchise. Success as a semi-absentee owner (also known as the executive model) often depends on your ability to hire the right employees, following franchise systems, and checking in often. Franchisor's know of the popularity of this concept and have built programs for potential franchisees to succeed as a semi-absentee owner.
Other people are ready to jump into the pool all at once and become a full-time franchisee. Many franchise concepts require franchisees to give their full-time effort to their location. They have felt the success of their franchise depends on a fully invested owner: time and capital. This may be the best franchise for someone who wants to become deeply involved in all aspects of their new business.
My Best Franchise is an Established One—or is it?
Obviously choosing a well-established franchise will lead to success. Many candidates pursue this path. There may be safety in the concept that has proven itself over many years. If this is important to you, then reading the FDD thoroughly to gather as much information about the business' success if of prime importance. Many franchises may look successful because they have been around for years, but their reporting may reflect a different reality.
Another issue with established franchises might be that all the locations in your area have already been bought out. The popularity of boutique fitness has led to many disappointed candidates who discover there are not locations for them to purchase near them.
Are you an innovator? Do you like to push the boundaries and try new things? Then a new franchise concept could be your best choice. There is plenty of space for growth in a new franchise and you never know which one will be the next explosive concept. Owning a single, or multiple locations could help you create a prosperous new income stream.
Brick-and-Mortar Location or Working from My Home Office?
The general public is most familiar with brick-and-mortar franchises because we drive past them each day on the way to and from work. They are the fast food restaurants, the gyms, and the retail stores that consistently bring in customers. These locations are called facility-based franchises. They have a storefront, a back office, and employees who clock in and out at that same spot each day. These often require slightly more in start-up capital than service-based concepts (though not all service-based concepts are free of storefront requirements).
Facility-based concepts often have a sign and sell a product that customers come in to purchase. The process is fairly simple and straightforward. Service-based franchises are slightly different.
In a service-based franchise, you don't have a "product" to sell. You are providing the customer with a service, like senior care, painting, or yard work. These concepts can often be run out of a home office. Customers don't come to you, you go to them. Generally, these have lower capital requirements, and because of the lack of storefront, they are quicker to start.
There are various pros and cons for you to consider when contemplating between a facility or service model. Often, choosing a concept you are passionate about will be the best path to follow when making this decision.
Where Do I Build My Best Franchise?
Franchisees pay the franchisor to secure a territory. This is an agreement between the two parties that keeps additional locations from sprouting up too close to each other. As mentioned earlier, you may not be able to invest in the franchise you want to because someone else could have locked up the area you are looking to own.
When investigating franchises, flexibility is important. The exact franchise you want may not be available, but a related or industry adjacent concept could appear.
The Cost Factor
Every franchise will have different specifications for capital requirements for starting a new location. They will also have net worth and liquid cash requirements for the franchisee. You may want to apply to a facility-based franchise but not meet the set monetary levels.
Learning about the financial requirements of each franchise can be difficult because no two franchises have the same qualifications.
Typically, facility-based franchises have higher financial prerequisites of candidates. You must establish and build a storefront and purchase product. This can be quite the undertaking: financially and in time duration. Service models are often lower in monetary obligation because you could only need a truck, a cell phone, and one employee.
Every "Best Franchise" is Different and Personal
Selecting the best franchise to invest is an exciting process. Every franchise candidate is starting down a path towards living life on their own terms. Being open to all the options will result in the best outcome during a franchise search. Knowing what you want out of your new business, the support the franchisor will provide, and their expectations will all culminate in revealing your optimal franchise.
Researching all the options can be difficult and at HIRE YOURSELF we are here to help you find the best franchise for you. We are skilled matchmakers and our investigative process and Franchise FastPass can be the key step you take in living your dreams.
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