How do I buy a Franchise?

Begin exploring franchise opportunities by considering your personal needs and wants. What type of life-style are you looking for? Do you want to work from your home, a mobile unit, or an office? Would you like to wear a suit to work, a uniform, or PJs? Do you want to have flexible hours or 9 to 5? By starting with the life-style questions first, you allow yourself to begin truly considering what it is your looking for in life. If you buy a business, and a franchise is a business, then your life will change. Let’s make sure it is a change that improves your life.

Next, you should consider the amount of time and money you’re willing to personally invest. Are you the type that wants to be in charge of the business? Hands-on ownership requires considerably more personal commitment from you than passive ownership models. In addition, will you have partners in the business? Will they be silent investors or active participants? Is this a part-time or full-time venture for you and your partners? Where is the money for the business coming from? Are you tapping into your retirement plan or long-term savings or looking for lenders/investors? Do you have credit issues that you need to begin resolving now in order to make a purchase in the future?

Now, consider the type and the duration of the business you want. Is there a business concept that portrays an image you find appealing? Is there an industry/concept that would be embarrassing for you to tell others you were in? Are you looking for a get it, grow it, sell it concept or a long-term venture? In addition, consider the commitment to following the franchise model. Are you comfortable using an established system or is it important to you to create the system yourself? You must remember that owning a business includes not only the product/service and industry but also the “back office.”

Once you’ve taken the time to consider these basic points, it is time to investigate individual franchise opportunities. Depending on your skill sets and time availability, the use of franchise broker may be your best option. Franchise brokers work directly with you to find a good fitting franchise opportunity for you. Because your broker represents multiple franchisors, the possibility of finding several viable options for you improves significantly. Upon finding the ideal match, your broker will facilitate introductions between you and the franchisor. This type of introduction allows the franchisor to know that you have considered all the options and are serious about your business venture. They, in-turn, take you more seriously as a potential owner. Remember that the franchisor is sizing you up just as you are measuring them.