Are you a FIT for franchise ownership?

Question 1: Many top performing franchise owners attribute their success to following the system. Would you be able to stick to a proven plan?

Feedback: When speaking with top-performing franchise owners, it's common that they'll attribute their success simply to following the system. Seasoned franchisors likely have more refined systems which may offer less flexibility. Younger franchisors often are still refining their systems and looking for franchise owners insight to tweak systems.

Your ability to "stick to the plan" may also determine what type of franchisor you are a fit for. One of many sections of FranNet's Personal Franchise Assessment can help you take a closer look at which stages of growth may be the best fit for you. For information on the P.F.A., reach out to your local FranNet advisor.

Question 2: Do you consider yourself a risk taker?

Feedback: If success was guaranteed, everyone would do it!

Think about this for a minute…… At one point, McDonalds was a risky investment with little to no track record. Locations failed and systems were still being refined. Today, it's rare to see a McDonalds close their doors. The franchisee that was a fit for McDonalds back in the 1950's is likely a different person than the person who's a fit today.

It's important to understand your risk tolerance. That will determine what type of franchise concept may be a fit for you.

Question 3: You may need a cheerleader from time to time. Do you have support of your family or those close to you?

Feedback: This is an important follow up to the risk tolerance question! Starting a business can put stress on areas of your life. It's crucial to have support of those closest to you on the days you ask yourself, "what have I gotten myself into." Don't worry, every entrepreneur asks themselves that at some point!

Have you discussed business ownership with your spouse and family members? If not, this is likely your next step. We recommend having ANYONE who would be involved in the decision to start a business be involved in the conversation from day one. This will surface any doubts, fears, uncertainties sooner than later!

Tip: You can find our educational videos on franchise ownership HERE. Watch these with any other key decision makers. They're great conversation starters and will ensure you're using your research time as effectively as possible.

Question 4: It's common for a life or career event to trigger business ownership exploration...

Feedback: It's common that a major life or career event triggers someone to put considerable focus towards business ownership. What's causing you to scratch that entrepreneurial itch? For some it's being let go from a job, unhappy with their current job, or just a feeling of "I can do more".

It's important to get to the root of your decision to explore business ownership. It should be a big part of the action plan you and your FranNet advisor develop. What you're trying to avoid can be just as important as what you're aiming for!

Here are some examples of recent clients we've worked with. Do any of them sound like you?

Steve was let go by his company after 3 years of service. This was his third company in the past 10 years. He's looking for security and stability for the remainder of his career. Steve and his FranNet advisor sought out businesses in stable industries that would allow him to replace/increase his earning potential.

Anne was working for a company where her expertise and skill-level was not being thoroughly utilized. Not to mention being underpaid. She's the person who's always looking to grow and felt stagnant with her repetitive job scenario. She and her FranNet advisor made sure to include variety and scalability into her business search.

Cameron had a position that afforded him flexibility to allocate 20 hours a week towards something new. Cameron's local FranNet advisor helped him learn about semi-absentee franchises that fit his profile and had available territory in his market. He currently owns multiple locations that his general manager runs for him and has a sellable asset.

HERE is a link to some other FranNet success stories.

Question 5: Franchising is a team sport. Most successful franchisees work well with the franchisor, neighboring franchise owners, and others in the system. Do you consider yourself a team player?

Feedback: One of the many draws to franchising is the idea of not having to go it alone. Good franchisors will establish a culture of openness and sharing of information and ideas. You have the ability to lean on others for advice and direction in your business. At the same time, others may want to lean on you too.

In addition to regular communication, most franchisors have annual meetings where best practices are shared, new ideas are discussed, and franchise owners have the ability to bond.

Question 6: Customers, clients, employees will need to hear from you or your team. Do you consider yourself a people person?

Feedback: Effective communication is key to leading a team, establishing relationships with clients/customers, and growing your business. While some businesses are a better fit for the outgoing person who's a great communicator, other businesses can be great for the strategist that hires the effective communicator.

FranNet works closely with over 200+ franchise companies. Before we accept them into our portfolio, we determine what the owners role will be and what skills are best suited.

Question 7: Timing in franchising is particularly important! When would you like to be in business for yourself?

Feedback: Most franchises have a defined territory that you'll operate your business within. Territories available today can be gone tomorrow. You never want to rush your research and decision but it does help to be within a 6-12 month window before you dig deep into any particular concepts. If you're outside 12 months, we recommend focusing your efforts on education.

Tip: HERE is a link to our monthly webinar series where we highlight franchise concepts we see as great opportunities. They may not be the perfect fit for you but we bet you'll find a nugget or two to include in your search when the time is right. Can't make the webinars? Recordings will be emailed to you if you register.

Question 8: Most businesses require your full attention. However, some have a flexible owners role. How many hours per week can you devote to a new business?

Feedback: Time and money! We all wish we had more of it. Time is one of the most valuable assets you bring to your new business. Most businesses are going to require your full attention. However, many FranNet clients over the years have kept a day job and started a business on the side. We strongly recommend flexibility in your current role and leadership experience if you're looking into a semi-absentee business.

Finding a franchise that's a good fit will help you maximize your time and shorten your "runway." Your local FranNet consultant can help you understand the realities of what it takes to start a business and find opportunities that fit the hours you have available as well as your budget. Find your local FranNet expert here.

Question 9: Businesses need time to ramp up. It helps to have savings to cover your expenses during the ramp up of your business. When do you NEED to see income from the business?

Feedback: It's common for new businesses to produce little to no income in the beginning. We recommend having at least 6-12 months of living expenses set aside. While you may not have that kind of money in your savings account, you may be able to leverage other assets that allow you to start your business on a solid financial footing.

FraNet offers monthly "Funding your Business webinars" to help you understand the various funding options you may have.

Question 10: Franchises can have BIG investment ranges. How much of your own money are you able to invest in a business?

Feedback: Buying a franchise can be like buying a car or house. The more money you have, the more options you have. Service based businesses tend to be lower investments, while "brick & mortar" type franchises or concepts with lots of equipment may present some with financial hurdles.

All quality franchise organizations will have minimum liquidity and net worth requirements. Your local FranNet advisor can help you understand what opportunities you qualify for before you spend lots of time researching on your own.