Choosing a profitable franchise When thinking...
Buying into a Canadian franchise is a big investment, so you need to complete a comprehensive due diligence process before you join any system. You'll need to take your time to make sure your decision is sound and that you are best positioned for success from the start.
However, sometimes the person selling you the franchise is interested in the opposite: they want a fast sale so they can make a quick buck. It's important to be wary of these types of people because your interests are not their priority. While you search for your next venture, here are some sales tactics that signal it's time to look somewhere else.
High-pressure sales methods
One of the most popular quick-sale tactics is high pressure. This is when you are made to feel as if you need to act right now so you don't miss the opportunity. If you find yourself in this position, consider why you feel this way: is it the tactic being used by the salesperson, or is there a genuine reason behind it? A good franchisor will want to take the time needed to make sure this is the right fit for both of you, so when your franchise search starts to feel like you're on a used car lot, it's time to move onto the next brand.
Guarantees of success
No one can promise you that your business will be successful, and any franchise that does so is dishonest. Similarly, you also need to be wary of claims that sound a little too amazing. For example, if you keep hearing about how much franchisees are making in the system or how much profit the brand makes, something is probably wrong.
Limited avenues for due diligence
One of the most significant parts of your due diligence in a franchise search is speaking to other franchisees in the system. If you are told you can only call franchisees who appear on an approved list from the franchisor, be wary. This is known as "steering," in which you are first directed to franchisees who are most likely to sing the brand's praises. The hope is that you will only speak to those franchisees and stop there. In reality, you need to talk to a wide pool of franchisees to get the most complete picture.
This is an important decision that only you can make. If the franchise's salesperson is trying to convince you that their franchise is the clear and only choice, it's time to move onto the next name on your list. Trust your own due diligence process and not the person who is being paid to sell a franchise to you.