How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
I am frequently asked ‘what is the best franchise to buy? What’s hot right now? What franchise companies are making the most money? ‘
What I tell people who are looking to invest in a franchise that’s the next best thing is that the “next best thing” may not be the best thing for you!
Yes, everyone wants to buy a franchise that is well recognized, has a good appeal to customers and will “make money.” However if you want to be part of a franchise for the long haul, and it is to be your business, then you need to ensure that you choose a franchise opportunity that fits your vision. When you picture yourself and the type of company you would like to work with, and for, your vision probably doesn’t conjure up money first. Most of us will visualize a company that offers a clear mission and strategy; leadership by example; an open and communicative management style; training and people development; and a positive and enjoyable working environment.
A truly successful franchise system will foster a culture of innovation and creativity to help stay one step ahead of the competition. You want to be part of a system that ensures that their products and services are up to date and in line with what your customers demand. That means that the franchisor should be constantly reviewing their existing products, procedures, processes and people to see what improvements can be made to ensure the success of the company and its franchisees as well as keeping customers coming back again and again.
When looking for the right franchise, take some time to affirm your vision first. Visualize it and write it down. If you know what you want from a business it will be much easier to find the franchise that best suits your wants and needs. Think of your list as KPI’s, Key Performance Indicators. When looking at a franchise compare their vision, mission and strategy to yours. Look beyond the franchise materials and projections
Ask questions.
- Who founded this company?
- What is their story? Is their personality and management style compatible with yours?
- Do they inspire and motivate you to want to join their system?
- Can you see yourself as part of this franchise for many years to come?
- Are they as serious about finding the right “fit” as you are?
There are 1000’s of franchise choices available. Some are well established with years of history behind them and others are just emerging on the franchise scene. Whether it’s the hot new franchise system or one that has been around for years, every franchise must be viewed with your vision in mind. If you find the right fit your ROI, Return on investment will be far more than a monetary return; it will be the next best thing for you!
