Purchasing a franchise offers several benefits for hopeful entrepreneurs. For example, franchises come with proven business models that provide the resources and support new owners need to increase their potential for success.
However, buying into a franchise isn’t just about buying into a business. It includes a partnership that requires a mutual investment and aligned outcomes for the franchisor and entrepreneur. To ensure that you set your new franchise up for success, there are a few mistakes you should avoid.
Failing to research the franchise thoroughly
Before buying into a franchise, you must research the options and find a good match for you and your goals. Make sure the franchise has the longevity to meet your 10 or even 15-year plan.
Not understanding the core values
Maybe you believe businesses should tread lightly on the planet. If the franchise relies on flying food in from the other side of the globe, perhaps it is not the best match for you. Choosing one that aligns with your values is typically best.
Not realizing a franchise is an ongoing investment
When you decide to purchase a franchise, it’s not a one-time investment. You will have ongoing costs to support the partnership for as long as you want to stay in the business. This requires time and money, so you must ensure you are prepared.
Knowing your options
Starting a business of any type requires a huge investment of time and money. It’s also important to fully understand the franchise contract and the legalese that is often used. This is the only way to ensure you are set up for long-term success.