How to terminate a franchise agreement
Although a franchisor will give you the tools,...
Becoming a franchisee involves risk and responsibility. The franchisee must invest their money into the business and is largely responsible for their failures and successes. Being the boss is both exciting and scary and with that weight, it's easy to wonder why a person would decide to become a franchisee.
Studies have shown potential franchisees are largely motivated by research. They talk to current franchisees of the franchises they are considering, read over company documents, attended meetings with representatives from the company and visit actual franchise locations in person.
Potential franchisees are very influenced by information from current franchisees in the company. An actual franchisee can provide first-hand experience with the company the person is considering, going over their successes, problems, the level of support they've received and the quality of the training.
Research by franchisees who have invested often cover specific areas of the franchiser's business operations, including how easy it is to run a franchised location, what type of support the company provides franchisees and what level of brand recognition the business has.
Franchisees have given various reasons for preferring a franchise over an independent business. Common reasons include the high risks involved with an independent business and the lack of any experience a franchisee may have at running a business. In many cases, the franchisee invested in an industry they'd worked in as an employee previously.
Of course, the biggest roadblock for many franchisees is financing. The initial investment required varies widely by franchise, but some franchisers have financing programs in place to assist qualified franchisee candidates.
Opportunity is a key component for some franchisees. The opportunity has presented itself at the right time and the franchisee is ready to start being their own boss. Since some franchisers have limited territories or are looking to aggressively expand, the opportunity for a new franchisee to join may be limited by time. A person who is interested in a franchise should begin the candidate process as soon as possible to avoid missing out on the chance to become a franchisee.