One of the greatest advancement opportunities in the history of the world is also one of the most recent ones. This is the ability to buy into a business model that you know is successful and can make you some money. Indeed, you no longer have to come up with your own idea and go through the many years of sleepless nights and brain strain trying to make it work. No, today you can buy into a franchise; and restaurant franchises are among the most common.
But just because you agree that these are great Ben and Florentine franchise opportunities—and often a great idea, too—here are some things you should think about when looking into which franchise to buy:
#1: CONSUMER DEMAND
The most important metric in any business is whether or not there is consumer demand for your product or service. After all, the whole of Capitalism is based on the idea of supply and demand: as long as there is demand, you can always profit from supply. In terms of buying a franchise, though, you want to pay attention to both present and future demand. Sometimes you can buy in at the right time while other times you can buy in before a trend is about to hit and get ahead of the wave.
#2: FRANCHISE STRENGTH
This refers to how much money the franchisor has. If you are going to give your money to a franchisor to run their business, you want to be sure that they have enough of their own money (based on proven success) to give you the support that they promise you.
#3: MARKET INTELLIGENCE
In addition to financial strength, you also want to look at how well this company understands the market. Do they make good investments? Do they make smart decisions about expansion or product lines? Do they seem to understand how the market works? How customers work? How is their marketing department?
#4: SELECTION CRITERIA
Just because you have the money to invest in a franchise does not mean that the franchisor will select you too. Indeed, they investigate you just as you do with them. As such, you should ask yourself a few more questions: Do they have a “standard” franchisor, a “type” of person they typically choose?
#5: LEGAL AGREEMENT
Finally, you want to take a look at what the proposed legal agreement will be; what is the arrangement? Have a lawyer look over these things to ensure that the terms are amicable.