How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
There are so many different franchise brands available in Canada that it can almost feel like too much of a good thing. How are you supposed to decide which brand is best for you when there are so many options?
To help narrow down the field and make your search more laser-focused and productive, consider the foundational factors that underlie franchise selection below.
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The personal inventory
The most successful franchise model in the world won't work for you if it doesn't meet your unique preferences and motivations. Are you looking to join a franchise to own a business, build an empire or simply get out of the house? Your answers matter here because until you know what your motivations are, you will not be able to look for franchises that satisfy them.
Once you have your personal motivations down, you can factor in your preferences on industry, work hour commitments and franchise longevity. You can use the results to really help narrow down your search range.
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The financial inventory
No matter what your ideals, you will, unfortunately, be constrained by your finances. Your current financial situation will partly determine which brands are available to you. Many franchises have a minimum net worth requirement, for example, that you will need to meet to join. Plus, you must have enough resources to live on once your business is open because it may take months or even years to become truly profitable, just like with any other new business.
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The skill and joy list
Look at your current skills and interests. This can help point you toward franchises that will enjoy working in. Of course, you don't necessarily need to know how to do everything in your new franchise from the very start; you will have training and support from your franchisor. However, it's still important to consider just how well your current skill set would serve you in a particular franchise before you decide to join it.
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The franchisor research
Take a very close look at the franchises you are considering. Study their disclosure documents, examine their financials, and dig into their background. Talk to any current and former franchisees you are able to get into contact with. It's crucial that you know as much as possible about a franchise's background, history, operations and inner workings before you seriously decide to begin the franchisee process. Joining a franchise that turns out to be very different from how it appeared during your search can really cause you to struggle in the early days of your business.
No matter what your motivation is, becoming a new franchisee can be very exciting. Consider the factors above to find a franchise that meets your financial and personal goals in an engaging industry that keeps you motivated. As you go through the search process, it is very likely that you will become clearer on what is the right franchise for you.
