If you’ve always dreamed of starting your own business, but you’re hesitant due to all of the risks that are involved, something that you might want to consider doing is purchasing a franchise instead. If you have a real love for the food industry, why not buy a food franchise?
If this sounds like something you’d be willing to consider, but you’d like a few tips on things that you can do to make sure that you’re truly making a wise investment, here are five questions that you should ask – things that will help you to evaluate what really is a good food franchise opportunity.
Does the franchise have a solid product? Before evaluating anything else, the first thing that you should think about is if the franchise has a solid product. Is the food made out of quality ingredients? Does it taste good? Is there variety on the menu? Do you like it? Does it have a reputation for being a favorite with customers? All of these things will help you determine if buying into the franchise is a smart investment.
Does the franchise bring in good money? Being that you’ll be spending several thousand dollars just to purchase the franchise, it’s also a good idea to look into the earning potential of the franchise. Do keep in mind that since the totals tend to vary per location, this is something that you should ask the franchisor rather than other franchisees. Franchisors will be able to provide you with more accurate projections.
Does the franchisor have a solid future plan? Even if the franchise is currently doing well, good business owners always have plans for the future. This is something else that you should ask the franchisor. Do they have a marketing concept for the next couple of years? How do they intend to keep up with the competition? Also, do they have intentions to offer you the training, mentoring, and possibly even the financial support that you need? All of this is relevant when evaluating a food franchise opportunity.
Does the franchisor have a good reputation? Say that you were thinking about buying into a franchise that is similar to Russo’s New York Pizzeria. If that’s the case, something else that you should think about before going into the food business is the kind of reputation that the franchisor has when it comes to his relationships with this franchisees. You want to feel like you will be respected as a part of their business.
Does the franchise seem like something you want to be involved in long-term? Although franchises are not nearly as risky as start-ups are, they still require a lot of time and work. That’s something else that you should think about while evaluating a food franchise opportunity. You need to ask yourself how much time you’re willing to put into it and if it’s something that you want to be a part of for the next several years. If you’re not willing to devote at least 3-5 years into a particular franchise, it’s best to look for one that you’re more passionate about or to rethink going into the franchise business altogether. If you’d like some tips on how to do well with a franchise, visit Fran Develop and put “tips for franchise success” in the search field.