business

There are so many different industries that have a franchise. In fact, there is likely no business model that you can’t find that isn’t already franchised. Once you understand that, your job is to narrow down your choices to fit your passions, your skills, and your community’s needs. Also, you’ll need to reconcile all that with your budget and financial ability.

Tip #1: Determine Your Industry

When you are looking at industry to a franchise, you want to ensure that it’s something you know that you’ll love. While you don’t have to have all the skills or business knowledge to run a franchise, it certainly does help to have some form of experience in the industry so that you know you have a love for it. After all, you’re going to be stuck with this business for a long time if everything goes right.

Industries that offer franchise opportunities for investment include:

Advertising
Auto
Beauty
Business services
Childcare
Cleaning
Computer/internet
Educational
Financial
Food
Health and fitness
Home-based
Home repair services
Pets
Photography and video
Printing, copying, shipping, signs
Retail
Senior care
Travel
Vending


The list above is representative of the types of industries that offer franchise opportunities. You can find a range of prices in each industry, so don’t think that anyone industry is out of bounds for you if your budget is on the small side. But, do expect to spend from $5K to $5 million in just the franchise fee.

Tip #2: Determine Your Budget

This list of potential costs may or may not be complete. You should add to it as you do your research so that you can ensure that your budget is sufficient to meet the needs of more than just paying the franchise fee. You’ll need to survive to profitability, and you’ll need to pay for everything else even if you’re not making money.

Typical costs of running a franchise, not including the franchise fee, include:

Accountant fees
Advertising and marketing fees
Build-out fees
Business licenses
Equipment
Grand opening expenses
Initial advertising and marketing expenses
Insurance
Landscaping
Legal fees
Maintenance
Product costs
Rent
Royalties
Salaries
Signage
Supplies
Taxes
Uniforms
Utilities
And more


Tip #3: Do Your Due Diligence

You’ll need to research every possibility. It helps once you’ve narrowed down your industry and your budget. You’re sure to find just the right franchise for your personality, your goals, and the lifestyle that you want to live with just a little research.

Talk to owners – Talk to other owners, and not only the ones they want you to. Ask for a list of the last ten people who bought franchises and talk to them. They’ll be in various stages of the business and can give you a lot better outlook.
Get a job – If you have chosen a place that has a franchise not too far from you in another community, why not get a job there to find out how it’s run and whether you like it. Ask the franchisor if there are any corporate-owned franchises within a reasonable distance from you where you can observe or even work.
You’ll either realize that you can go for it now, or you may determine that you need to work a little longer at what you’re doing now to pay for your dream. Don’t change your dream because you can’t afford it right now; instead, keep on dreaming while saving and planning for that future that you want as a franchise investor.

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