How to assess the best franchise for you

If you’re thinking of buying a franchise, there are a number of important issues to consider. Some of these issues relate to your suitability for the franchise, your current skill set and why you even want to do this in the first place!

Other factors to consider relate to the franchise itself. What level of support and training they provide, how much it will cost, what options they provide, etc. This checklist highlights the key factors to work through:

Yourself

• What is the main reason you are doing this?

• Are you good with people?

• How much will the franchise cost?

• Can you afford it? Will you need to borrow?

• How much money do you want / need to make?

• How many hours do you want to work each week?

• Do you have the skills required to run this franchise?

• Are you comfortable making sales, or could you be?

• Do you enjoy working in a team, or are you a lone wolf?

• Can you actually see yourself doing this?

• Does it get you excited?

The franchise

• How does the franchise make money?

• What support is provided?

• What training is included and what does it cover?

• How will you get customers?

• What marketing assistance is provided?

• How much money can you make from this franchise?

• What ongoing costs and charges are there?

• Do they help recruit and train staff?

• What assistance is provided in managing your tax and finances?

• Speak to existing franchisees, how do they find it?

• Spend a day with a franchisee - can you see yourself doing this?

As you can see, there are many issues to consider and think through before you dive in! Also, be sure to have the financial aspects reviewed by a franchise accountant, one who specialises in the franchise sector.

For further information and support, Franchise Accounting and Tax (FACTX) provide a helpful Pre-purchase Review. Click here to read more.

Let me know if you need a hand.
Peter