Franchisors Only Want My Money

Why do I feel when I start talking to a franchise representative that their selection process is more about how much money I can spend than if I'm truly the right person to own and operate their franchise business? I worked too hard for my money and I want to make the right choice but there are too many choices. Some great but not in my budget, some in my budget but not so great and the others, well who knows.

The truth from an insider perspective is, your gut feeling is probably true and your search has proven to be fruitless because there really are too many choices; some great, some good and some not so good. There are even resale franchise opportunities. Do I buy and build new or buy an existing franchise?
The fact is there is an abundance of choices and it can be too daunting to even begin in fear of making a mistake. For example, as per a 2007 United States total economic impact of franchises on their economy study which included:

• The number of jobs filled within and because of franchised businesses (17,430,700)
• The number of franchise establishments (over 828,138)
• Direct and indirect economic output of franchised businesses; ($2.1 trillion)
• Gross Domestic Product (GDP) of franchised businesses ($1.2 trillion)

So, here are some tips I know will help:

1. Establish your budget for a franchise license and start-up costs leaving a safety net to cover your household expenses for a minimum of one year.
2. Create a checklist of what is important to you in franchise business ownership e.g.: Will I be an owner/operator or am I looking for an investment opportunity? If I own and operate what business/product/service or industry will get me out of bed every day to enjoy what I do? What are my skills, experience and talents that are transferrable to a franchise? High growth, high demand marketplace? Low investment high profits? Exceptional training and support to the franchisee and staff. etc.
3. An existing franchise versus new? Prepare a SWOT (Strengths/Weaknesses/Opportunities/Threats) analysis for yourself. For example: S = established revenues, W = revenues declining due to poor staff performance, O = new management could renew revenue performance in established location, T = desirable location could be absorbed by another competitor
4. Short list potential franchise systems that catch your interest from your community, word of mouth or media.
5. Reach out to a franchise broker who can then get to know you better and save you time matching you to the right franchise. Item 4 doesn't necessarily mean buying what you saw or heard but rather narrowing down your search to type of franchise. After all, there might be a better burger or donut you are not aware of or, a franchise offering you never thought of such as in home healthcare or automotive services to name a couple.

My most significant point to remember is that you don't have to search or go into a franchise systems selection process alone. Get the expert and free advice. The broker is typically compensated by the franchisor for saving them time in bringing forward a qualified candidate for consideration.
Happy franchise hunting!