Here is a handbook of useful tips to start a franchise venture in the best way, but above all to avoid unpleasant surprises.
You do not buy a job, you become an entrepreneur, you make a choice of life by investing time and money, binding for a few years (3-5) to a business project. These concepts must be clear in case you want to be part of a franchise chain.
Even if there are laws that regulates the sector, it is better to act with caution.
Gather as much information you can on Franchise Times about the organizational structure of the franchisor (the chain), on the information programs provided for the franchisee (the franchisee), on the purchase policy of products and company marketing.
2. The contract
Never sign without first discussing and understanding each step of the commercial proposal, not even the most insignificant.
Do not trust the promises made by voice, without any value. Better to be advised by a lawyer and an expert in the field.
3. Contact the affiliates
Check to see if the franchisor is a trustworthy company like https://www.mybekins.com/location/sarasota-fl-movers/.
Always ask for appropriate assistance. Also, you should research if the sector is profitable or there are problems.
4. No hurry
The most reliable chains select and choose their affiliates and not vice versa, because the serious franchisor at all interest to make the franchisee’s business go well.
In particular, pay attention to proposals for discounts and promotions during fairs and for those who want to get a signature at all costs.
5. Pay attention to entry fees
A too high and unjustifiable initial investment quota could be the system used by the chain to cash in immediately, without taking an interest in the franchisee’s business success.
Do not sign agreements that involve large purchases of goods.
6. The right place
It is usually the franchisor who provides advice on the area and the strategic location where to start the business. The feasibility study is a way to take care of the franchisee.
7. Facilitated loans
There are credit institutions that enter into agreements with the chains to guarantee access to credit to their franchisees. The possibility of a bank loan can be a guarantee of reliability.
8. The duration of the contract
It is important that there are no contractual penalties for those who decide to close the business at a certain moment. The exclusivity of the area must be expressly declared in the contract, a non-secondary clause to avoid direct competition from other affiliates.
9. Strategic choices
The affiliate must share the strategies with the chain.
It is an aspect that should not be underestimated because in the future, once the project has started, it will have to be subject to rules and strategies dictated by the franchisor.
10. Foreign chains
Pay attention to foreign chains. Always research about them. In any case, there is a regulation in your country to gather information to and use all the precautions suggested.