How to terminate a franchise agreement
Although a franchisor will give you the tools,...
There's a lot of factors that go into becoming a successful franchisee in Canada, from finding the right brand to handling the day-to-day operations of your business like a pro. However, one of the most important decisions--if not the most important--is one that you will make right at the start, and that's what industry to go into. Before you can decide on a specific franchisor, you'll need to decide which industry you want to be a part of.
What can you see yourself doing?
Industry selection is not just about what "calls" to you--after all, you may love cruise ships but not the idea of selling cruises to travelers--but what plays to your preferences and your preferred lifestyle. If the idea of being in your own store sounds like your version of heaven, an industry that usually comes with a physical location is going to be your starting point. If that idea sounds like torture, however, you'll need to look at industries with more mobile options.
Of course, liking and being interested in the industry you are joining will make it easier for you to be successful, but that can't be your only criteria. Consider all the drawbacks and benefits of each industry as you make your way down your prospects list, and be honest about what you feel is a plus and what is a definite minus.
What are the challenges now and in the future?
All industries come with their own set of challenges you may have to contend with to be successful as a franchisee. It's important to know not only an industry's challenges of today, but also what it could be facing in the future. Consider five, ten and even 20 years down the line. Research the industries you are weighing to see where they are now and where they could be tomorrow so you have a clearer idea of what you are getting into and what the future could hold for your business. When you know what the current challenges are and what the upcoming difficulties may be, you'll be able to make a more informed decision now and prepare yourself for the future.
Choosing the right industry for your franchise is a critical decision that you will have to make early in your journey as a franchisee. Give this all-important step of the franchisee process the time and weight it deserves before you move forward.