How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
When you are dreaming about owning your own business, one obstacle in your way can be your own natural fear. Starting a new business can be a scary prospect as you are usually risking your own money and possibly someone else's. It's a lot of pressure to take on, and it's the shadow of that pressure that could be preventing you from taking that all-important first step.
There are three very common fears people contend with as they consider opening a business in Canada, but there are also ways a Canadian franchise could help allay them.
Fear of failing
A fear of failure prevents people from doing many things, including starting a new business. While a franchisor can't technically remove your fear of failure, it can help to know that are you are joining a proven system that can increase your chances of success if you follow it. Speak to other franchisees in the systems you are considering to get a first-person perspective on how well they work.
Fear of losing money
Your money is on the line in your new business, and that's a lot to take in. If your business fails, you could lose all the money you invested into it plus money that's not yours, such as the business loan you received from a bank. As with failure, a franchisor can't guarantee anything about your finances. However, the right franchisor will evaluate you and advise you if they believe you are not set up to join their system and succeed at this time. Although this can be harsh, it will prevent you from taking the wrong opportunity and setting yourself up for loss from the start.
Fear of risk
Whether you start your own business or join a franchise, there is going to be risk involved. The risk with a franchise, however, is less than the risk of starting your own business from the ground floor. This is because you will be part of a recognized brand and will have access to training, support and other benefits, such as established relationships with suppliers, marketing and other support and promotional programs.
Starting a new business is a scary prospect, but your fears shouldn't prevent you from doing so. A franchise can make things easier on you when you find the Canadian franchise system that is the right fit. Do your research, know your financials, and get yourself started on your journey to business ownership.
