Deciding you want to go into business for yourself is a big decision to make.  Shifting from the mindset of a predictable path to one that leaves many unknowns is both a scary and exciting at the same time.  Making the leap to franchise ownership will conjure up a whole myriad of emotions, but this decision is just the first of many on your new journey.

The next big decision on this journey will be deciding exactly what kind of business you want to invest in.  The goal is finding that fit between what works for you and for the market.  Before signing on that dotted line, we recommend asking yourself this set of seven questions to determine whether you should be moving forward with the particular franchise.

How Do You Get Customers?

This question might seem pretty obvious, but that is also why we recommend you ask it.  Customers will drive your business so assuming you know how this happens could help prevent failure before even getting started.  

Make sure you discuss with the franchisor not only about their current marketing and customer acquisition programs but have discussions with current franchisees within the system.  How did they build their business?  What has worked vs. what has not worked?  Understanding this portion is imperative when it comes to running the business and sustaining a healthy growth trajectory.

How Do You Service Your Customers?

Acquiring customers is great, but can you provide the product or service they need?  Let’s say the franchise is a garage door repair business.  Who will be doing the repairs?  Is this a business where you provide the service, or will you need to hire someone?  This is also a good spot to think about market fit.  If the next few years look anything like this current labor market, the service portion might be one of the most important.

What Are the Unit Economics of the Brand?

It is fair to say unit economics are often considered the foundational building blocks of the business.  Understanding exactly what it costs you to bring in a customer, and exactly how much money you can expect from that customer is vital to properly budgeting and sustaining the business over time.  If you can answer this question, you will have the ability to make more informed, fact based decisions and most importantly, increase potential profitability.

What is YOUR Role and the Role of Successful Owners?

We've touched on this previously in the question regarding servicing customers, but this challenges you to get a defined description of what your role is as a franchise owner.  Is the model owner/operator?  Will you hire someone to run the business, while you oversee the operation?  If you are not someone that wants to be in the trenches, it is important to get a full understanding of what you will be getting into.  If you can’t see yourself in the shoes of even their most successful owners, then this might not actually be a fit for you.

Do You Have a Partner on the Other Side?

Here, we are not talking about the partner you might invest in the business with – we are talking about the franchisor.  In a great franchise system, you should be able to go into business for yourself, but never feel like you are by yourself.  Get to know the franchisor and know this is a partnership you see working with for the long haul.

What is the Brand's Value Proposition?

A brand's value proposition gives detailed reasons why a product or service is right for a particular market.  If you enter this business, do you know what the commitment is to its customers?  Is it a commitment you feel like you could make?  It is one thing to sell a product or service but investing in it requires an actual buy-in of the brand outside of your financial commitment.

Can You See Yourself Doing This?

Franchise contracts are long-term commitments.  These are not something you should enter into lightly.  The basic litmus test of, “How does the thought of this make me feel?” might make all the difference in whether or not this is the brand for you.

Information is Power When Exploring Franchise Ownership

As we stated previously, making the leap into franchise ownership is a decision that should be well thought out as it is both complex and life changing.  Understanding how to navigate the process and asking the appropriate questions can make all the difference into knowing what makes the most sense for you and your future goals.

At Evergreen Franchise Advisors, we don’t believe anyone should have to go at this process alone.  Our data-driven assessment and approach is aimed to match you with a business that suits your entrepreneurial style.  If you are serious about exploring opportunities in franchise ownership, we invite you to schedule a call with our team and we will guide you through the rest.