23 Feb 2022, 16:23 — 6 min read
Before you make that huge step in taking a franchise opportunity, you need to ask yourself if this is the kind of business you want to get into and if you are ready to take the responsibilities that go along with being a new business owner. Remember that your thoughts of putting up a business are more than just having something to keep you busy, but also making it a successful one that can help sustain your family's needs. After all, we know that being employed may not provide us with the same financial aspects.
Here are the common questions that a franchisor may ask from you before you finally decide to sign that contract:
There should be careful thought on what you want to achieve. You should identify the importance of building a business before starting one. Do you have the resources to start the business?Are you ready to shell out more money should the need arise? No business can start without any funds. And to start with just a small business, you must still realize that more than paying the franchise cost, there is still a lot more that needs to care. Never expect to be that profitable in the first months of business. Some take 1-3 years, depending on the kind of products or services location, and several other factors.
Do not be deceived by other franchise opportunities having small capital because they are more likely to become expensive in the long run. It may lack the same kind of support from its franchisor as setting your eyes on a more competitive product.
Narrowing Down Your Options
There are a lot of franchising opportunities that you may have crossed out after realizing what you want. More than looking at different well-known brands, try to check the type of business and specific concepts. Think of how it would nicely fit into the criteria you have established regarding your skills, goals, and risk tolerance.
Sometimes narrowing down your options may lead you to choose whether to put up a business that you are comfortable starting with or to learn something new because it is currently in demand. The risk may be a bit higher if you start with a business that you know nothing about, but if you are more than 100% willing to take up training and seminars to be armed with the correct information and develop more skills, then by all means.
Franchisor Disclosure Contract
You may now have a clear thought on which business to franchise. Your franchisor may furnish you with a copy of the Agreement, which you should be able to read and study through.
Be aware of the following:
It may be easy to want to earn more than what we have now, especially if we have the funds to start a business. However, one should not just conclude wanting a particular company without sorting out the kind of business that the individual can create. Seeking advice from franchising experts will do a lot of help.
Also read: Level up your business through rebranding
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Posted byButz Olivares Bartolome
Business Franchise Guru to MSMEs since 1993