With many franchise brands to choose from across a host of different industries, you’re surrounded by opportunities when looking to start your own business. Whether you just started thinking about becoming your own boss or you already have experience with franchising and are looking to diversify your portfolio, choosing the right one for you is key.
It’s important to evaluate what the franchisor is offering so you can forge a partnership that is a great fit and mutually beneficial and where you know you’re in safe hands. We’ve narrowed it down to the top four criteria to focus on when evaluating your next franchise opportunity.
Product
Believing in the franchisor’s product offering is key. Genuinely caring about the services or products you are providing to your consumers and focusing on their needs is crucial when running a successful business as it brings your personal passion into the equation. Make sure you really understand the market the franchisor is targeting and how they’re designed around those specific customers’ needs. Experience-focused brands are more easily able to build advocacy and loyalty.
A great example is the boutique fitness industry where real care is placed in forging communities and recognising key milestones. This drives high levels of loyalty and brand affinity, driving referral, word of mouth and repeat business. Looking for a product or service which is consistently focused on driving the connection between the consumer and the brand experience will result in positive net promoter scores (NPS). Plus, if you’ve got a personal love of the service you’re offering, your customers will feel your passion at every touchpoint and you’ll be able to place yourself in their shoes.
Support
Setting up a new business comes with many exciting challenges as well as opportunities. From finding and securing the right property for your store to hiring an all-star team and the administrative time and costs for setting up daily accounting activities – the list goes on. Add into this that you might be entering into an industry that’s new to you, you’re going to have a lot of questions. Be sure to look for franchisors that have an experienced support team with the processes and blueprints in place to help you from your first enquiry and beyond your first days of trading so you feel confident and supported throughout your journey.
Investment
When evaluating a franchise opportunity, one of the most important factors is the initial investment required to get started. Franchise costs vary significantly across industries and business models, so it’s important that the investment fits the capital you have available. Be transparent with the amount of income you’re willing to invest and look for franchisors who can be clear with you about the expected breakeven and payback period when following the proven business model.
Timespent
Lastly, when starting your own business, you are dedicating time, energy and resources so it’s necessary to really understand the responsibility you will be undertaking. People begin franchising for different motives so it’s important to be clear with your expectations so the franchisor can make certain it’s the right fit. Franchising is a partnership and that means it has to be right for you and your chosen franchisor. Some brands offer management partnerships where you can err away from day-to-day operations for a slightly elevated monthly franchise fee, so first ask yourself how much you want to be involved in the running of your new business and see which franchise partners have options to help you on your preferred journey.
Take the time to nail down why you want to start a franchise and what you want the experience to be like – this is the formula for choosing the right partner. Evaluate your opportunities on the above four criteria and your own objectives and you’re sure to be at the start of a very exciting journey.
This article comes courtesy of TRIB3 – the ultimate boutique fitness concept offering unique group HIIT workouts in signature industrial-luxe studios. TRIB3 is already active in several international markets and rapidly expanding.
