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The American Dream is to own your home and to work for yourself. One business model that lets you reach your dream is a franchise. The franchisor, or parent company, sells the rights to their name, logo, and business model to a franchisee, or entrepreneur. Many restaurants, hotels, and service-oriented businesses are franchises.

When you are opening a franchise, you benefit from brand recognition, promotions, and marketing. Generally, because the business model is already in place, there is less risk in owning a franchise than in starting your own business from scratch.

3 Things to Consider Before Purchasing a Franchise

The Small Business Administration offers a wealth of resources about franchises on its website. No matter what type of business you want to own, you should be asking the tough questions.  Before taking any steps with a franchise, here is what the SBA recommends that you do:

• Review your finances. You should know what you have to invest, what you want to spend, and how much financing you can receive. This can help you know if the franchise will fit into your investment portfolio.
• Consider your skills and experience. Do you have the skills necessary to franchise with a particular company? Do you already have experience as a business owner? Be sure to evaluate whether opening a franchise with corporate support or buying a business of your own fits you better.
• Ask questions. You will not be able to assess which franchise opportunity is best for you if you do not know what each one is offering. Most importantly, you want to understand every line of a contract before signing it.

Benefits of Owning a Franchise

Owning a business, whether a franchise or not, is a tough haul. However, a franchise offers many benefits over starting a business from scratch:

• Track record of success
• Training programs
• Ongoing support
• Startup assistance
• Purchasing power

The franchisor will give you a lot of back-end support, from purchasing the right real-estate location to construction advice and support as you set up your business. Your franchisor will help you avoid much of the risk in starting a new business.

Interested in a Best in Class Franchise?

Although there is less risk involved in owning a franchise, there’s also a lot of work. If you’re passionate about helping children succeed, having more control over your schedule and being a business owner, contact us about a franchise option. Download our franchise brochure or call us at 425-880-2688 to get more information.

 

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