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Things to Consider in Investing in the Right Franchise
It takes a fair amount of courage to start a business from the ground up, especially if it’s your first time. Even seasoned entrepreneurs think twice or more before entering a new venture.
Good thing there’s always the option of buying or investing in a franchise, which, in some ways, is more convenient. The fee you’ll have to shell out for your franchise may be bigger than setting up shop from scratch, but it has its share of advantages, such as having a reputable brand and a tried-and-tested operating system.
Before you begin your search for your dream franchise, read up on the things you need to know:
1. BE FINANCIALLY PREPARED
With the ease of starting a business by investing in a franchise, the only thing that you should consider is the expense for capitalization and acquisition of a brand. Aside from rent, utilities, and wages, you’ll have to shell out cash for franchisor-approved equipment, signage, inventory and royalties. Some big brands even require you to chip in for advertising fees. Make sure that you discuss the total franchise investment cost.
2. LOCATION IS EVERYTHING
You may have the franchise rights for one of the most famous companies in the world, but if you set up at a location that is not business ready, your investment might just go to waste. Franchisors will also have the last say in their franchisees’ locations, so research and study your chosen location wisely.
3. INTERVIEW BRANCH PERSONNEL OF YOUR EYED FRANCHISE
Feedback from other franchise owners would be invaluable in choosing where to pour your cash. If they’re bound by a non-disclosure agreement, ‘mystery shop’ in different branches of the brand. Ask the cashier on their daily sales, foot traffic and customer profile. Aside from that, scan and observe the environment of the shop for you to have an idea on what kind of location you should put up your branch.
4. READ THE FINE PRINT OF YOUR CONTRACT
Make sure that you’re not going to end up on the losing end when you sign on the dotted line. Go through every single sentence, and don’t be afraid to ask the franchisor to clarify anything.
5. NOT ALL FRANCHISORS ARE CREATED EQUAL
Before shelling out your cash, do some research on the company you’re planning to invest in. Read up on news about the company and the major stakeholders, and make sure their financial standing is as secure as can be. Keep in mind that not all famous brands are profitable.
If you’ve got the budget, we suggest investing in a reputable company like 7-Eleven, which plans to open 400 new stores in key cities nationwide in 2016. The company is seeking new partners to support its expansion, and you can either avail of an all-new 7-Eleven franchise or convert your existing business or property into a 7-Eleven store.
And given 7-Eleven’s standing as the No. 1 convenience store in the Philippines, you’ll be assured of a tried-andtested
system and solid support every step you take, from employee training and basic HR coaching to sales monitoring. It’s definitely a company worth investing in!
For more details on 7-Eleven’s franchise opportunity offerings, you may see their packages and reach them via this link.