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Embarking on the journey of franchise ownership is no easy task, especially when finding the perfect franchise. As you navigate this challenging process, know that you’re not alone. Many new franchise owners have faced the same daunting task.
There’s a lot of pressure on your shoulders when choosing a franchise. You want to choose the one that will be the most profitable, the most enjoyable, and the one that will offer you the highest chances of success while living a flexible lifestyle as a franchisee. You want time off. You want to love the work you’re doing. And you want to show up in a way that leaves you excited rather than drained.
These considerations are valid and important, so how do you decide? One of the best places to start is by looking at what current franchise owners wish they’d known when they were in your decision-making spot. Here are three of the top regrets of franchise owners and how to avoid them.
Not Doing Due Diligence About Franchise Systems
One of the best parts of a franchise is entering a system with proven growth potential. There is a wealth of plug-and-play systems available, so you don’t have to reinvent the wheel when you invest.
While this sounds good, you must understand what those systems look like before signing on with the franchise. If the tried and true systems for growth don’t align with your desires as a franchisee, then that particular franchise might not be the best fit for you.
Do your due diligence by asking the franchisor for more details about their systems and processes. Likewise, talk to current franchisees to better understand what daily life looks like in the franchise and what will be expected of you. These answers will help you know if the systems you’re walking into will be helpful or hard to swallow as you move through your franchisee journey.
Not Researching the Financial Investments Required
Many people look at the initial franchise investment and think that’s all they’ll need to invest to get started. However, most franchises require additional financial investments to start and stay up and running. Equipment. Gear. Real estate. Office supplies. There are a lot of smaller areas that require financial investment that you might not be aware of initially. When those sneak up on you, it can be an unwelcome surprise that can taint your success and enjoyment as a franchisee.
Talk to the franchisor to understand what other areas of the business you’ll need to invest in financially. If a sample budget is available, look it over and plan accordingly. While the franchisor might get you some discounts through suppliers and vendors, it’s still important to predict the expenses you’ll be asked to shoulder before signing on the dotted line.
Not Understanding the Time It Takes to Become Profitable
Not even proven formulas can be overnight successes. Establishing your presence, finding your new clientele, opening your doors, and becoming profitable takes time. Talking to current franchisees in your area and the franchisor will help you get a more realistic time frame for when you can expect to profit from your new venture. This time frame will help you manage your expectations and cash flow to make sound decisions for you and your family.
When it comes to finding the right franchise, it’s all about asking the right questions. Doing your due diligence and research will help you have a more realistic idea of what to expect when you enter this next phase of your professional life.
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Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.