Choosing a profitable franchise When thinking...
Try These 2 Quick Tips
It's good news when your Canadian franchise search has narrowed down to two very suitable and interesting opportunities. However, now you have to decide which one you want to invest in. Use the tips below to discover which path is the right one for you.
Ask Yourself Some Questions
To compare each franchise, first write down your answers to the following questions:
• What is the up-front investment?
• What is your break-even timeline?
• What is your role going to be?
• How many hours will you work?
• How many employees do you need to hire?
• What is your plan to grow the business?
• How long is the franchise agreement?
• Will you be able to find a location quickly, if needed?
• What is the franchisor support like?
• How does the franchisor help with marketing and advertising?
• Is the business affected by the seasons?
Once you have the answers down to these, you can go ahead and make another list for each franchisor that provides an overview of the data you collected, as outlined below:
• Number of new franchisees added yearly
• Number of franchisees lost yearly
• Average length of time to profitability
• Tools available to franchisees
• Technology available to franchisees
• Satisfaction level of current franchisees
• The competition
• The demographics of the area the franchise will be in
Consider How You Feel
Once you have your data and answers side-by-side, you can take another look at both franchises and gauge your feelings about each one. Gut feelings will come into play here, and you can ask for input from your family members and professional colleagues too. Visualize yourself working in each franchise if possible, including what you would be doing daily for each. Sometimes, visualization alone can help make the ideal choice clearer.
If you find you like both opportunities equally no matter how you weigh the data and your feelings, compare each one using your answers and data line by line. A little drawback in one that doesn't exist in the other or stronger data from one franchisor in a specific area of concern to you can help you make your final choice.
A new franchise is huge commitment in terms of money, time and energy. To position yourself for success from the start, you'll need to look at your shortlist with a highly critical eye so you make the right decision for your life and your personal and financial goals.