an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, e.g., providing a broadcasting service or acting as an agent for a company's products.
synonyms: warrant, charter, license, permit, authorization, permission, sanction, privilege
Perhaps you are tinkering with the idea of becoming a service business franchisee. Perhaps you also have a general idea of what is required. Finally, perhaps you have also done at least some research into franchise opportunities, and are now ready to take the plunge. Or are you? Here is a great read that addresses the personality of a franchise owner. Let’s take a look at some additional thoughts that should go into your “franchise buying knowledge bank”.
- Go with what you know It can be tempting to test the waters with a new industry. You may feel that you are ready to head in a new direction; providing yourself with an opportunity to “start over”. Listening to/reading about the benefits of the service may make perfect sense to you. Although there is nothing inherently wrong with jumping in “cold”, imagine how much easier the process will be if you are already familiar with the service being provided. Bringing your existing skill set to the opportunity will not only keep you interested, but this will also make you more attractive to the franchisor. However, do not get too bogged down with staying in an industry in which you’ve already worked; there is room for crossover. In her former life, a senior relocation service franchisee worked as a special events planner. When making the decision to purchase the franchise, she saw similarities in her former job with moving seniors: "There is no greater feeling than knowing that you are helping someone with an important event in their life. Planning a special event is very much like planning a big move. Exciting, stressful, and crazy all wrapped in one. "
- It's now or never Perhaps you are looking to actually get away from what you’ve been doing. Head in a completely different direction. Maybe a recent life event has shown you an area of interest that you had never considered as a job! Have you always wanted to be a part of an industry, but know that your background is not the right fit? Franchising may be a low risk option for you, providing that you are willing to put in the time and effort it will take to learn the ropes.
- A word on ROI Whether you are just starting to research your opportunities, or are about to dive in, you are familiar with return on investment (ROI). How quickly can you expect to not only make back your investment, but how quickly can you start to profit from your investment? Regardless of what the numbers tell you, you need to be willing to put in the work. Here I am not just talking about putting in the hours. Anyone can clock in a 12-hour day. The hours need to be effective and productive. To a large degree you are your own boss – with that comes a huge amount of freedom. Keep in mind that your franchisor will be looking for the royalty fees at the end of each month. It should be obvious that a lack of production on your part will draw negative attention to you, raising questions in the franchisor’s mind about your dedication.
- SOS!! Imagine that a franchise opportunity looks to be the ideal match for you. Everything looks good on paper, in your heart, in your mind and in your bank account. After your training you are set free to set the world on fire. Yet, the “spark” has trouble taking hold, even after a few months. What are your options, short of breaking your contract? It is essential that you keep the lines of communication open with your franchisor. While you have made an investment in the franchise, the franchisor has also made an investment in you! They want nothing more than your success. A good franchise will have a strong support and training programs available to you to ensure that success. Having an interest or a background in your chosen franchise will not necessarily guarantee success – owning a business and having an interest in one are two different things. Take advantage of what your franchisor offers to help get you moving in the right direction.