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Inside the Mind of Franchisees: What to Consider Before your Partnership


If you’ve ever met an entrepreneur who’s started their own business and turned it into a franchise system, then maybe you’ve heard some pointers for what to look for during your search for the right franchise opportunity. Likewise, if you know a franchise investor, perhaps you’ve heard of a few things to look out for.


What’s on the mind of potential franchisees is making the best possible investment decision and those who’ve already walked that path always have tips to share that may prove beneficial. Consider the following select points when deciding on the kind of franchise you’ll partner with.


Woman Thinking


Corporate & Franchisee Owned

Not all franchise systems feature a large portion of franchisee owned locations. In fact, some franchise systems feature less than half franchisee owned locations, which means individual owner-operated locations are the minority and corporate owned locations are the majority. This can at times impact the culture of the company, including the satisfaction of current franchisees. Nonetheless, franchise systems differ from one to the next in terms of how the business is run as a whole, which means there is no one correct way for a franchise to run.


Consider your interests and goals, and then research how the ratio of corporate versus franchisee owned locations affects the company culture of any given prospective franchise system. Evaluate the pros and cons of corporate versus franchise owned for each potential franchise to gain the clearest picture of how this may affect your investment decision. Franchisees are ultimately the customers of franchisors. Ask yourself, does this franchise system really respect the needs of franchisees and make them a priority?


Focus & Expertise

Are the franchise brands you’re researching well-focused, targeting the right niche for their particular set of strengths? What does the right niche look like for each franchise you consider and how would you improve on their business model? If there are improvements you’d like to make, reflect on whether it’s possible to influence the culture of the franchise (such as may be achievable with relatively newer companies) and if not, whether you can see yourself accepting the franchise as is or if you’re better off investigating other opportunities.


Consider the power of a well-focused franchise concept that incorporates a commitment to expertise. Are you prepared to join a franchise with an intensity of focus and expertise, ready to take on the training and make it a part of your life as you manage your location? Think about your own strengths and where you can improve to best align yourself with a franchise system that’s compatible.


Brainstorm Future Questions

What questions and concerns can you see yourself having five years down the line as you operate your franchise location? Make a list of hypothetical situations, what-if scenarios, and best and worst case scenarios, etc. What would you like to know now that likely wouldn’t have occurred to you until later if you failed to make a detailed analysis of potentialities now? Ask questions and find answers that clear up your confusion, or consider alternative ways to acquire the peace of mind you need to make running your business a positive life decision. 

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