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Two years ago , John Falvey, then a specialist broker for Goldman Sachs on Wall Street, decided he needed a career change. After quitting his job, he came across an old colleague who was thriving as a franchise owner of a mobile pet-grooming business. So Falvey decided to get into the franchising business, too. After a four-month search, he now spends his time cleaning the ducts of air conditioning and heating systems as a Rockville Centre, New York-based franchise owner of DUCTZ, an Ann Arbor, Michigan air duct cleaning franchise organization.
It's not sexy, but if it makes me money, maybe it's not that bad. But if you want to get into franchising, then you're in luck: The problem? The decision can be overwhelming. No one particular business is for everyone, but to find one that will give you a greater chance of success, you should be prepared to devote a significant amount of time and research.
Here's our guide to choosing a franchise business. Choosing the Right Franchise: Get to Know Thyself Before you jump into any particular franchise opportunity, you need to start by getting intimate with yourself. What do you want out of a franchise business? People buy into franchises for a variety of different reasons. Is this something that you want to do as a hobby, and still work a full-time job on the side?
Will this need to become your primary source of income? Are you looking to build equity? Do you eventually want to own more than one franchise? How much money do you have to invest? You might have an idea of what type of business you want to get into, but taking inventory of your capital will give you a realistic sense of what franchise opportunities are possible for your budget. Like any business, you shouldn't expect to be profitable right when you open your doors, so make sure you have enough money to live off of while you get off the ground.
You should be prepared for the fact that loans won't necessarily be easy to come by. In this case, it may be harder to secure loans from the bank. A word of caution from Omholt: This probably will have a high turnover rate, will be more saturated and competitive, won't provide a lot of support and training, and won't be a business you can resell. This is a commonly neglected question potential franchisees fail to ask themselves, Omholt says. Or is this something you intend to pass down to an heir?
How much risk are you willing to assume? Once you've reviewed your financials, you can probably get a sense of how much risk you're able to assume, but also take into account your personality: Some people prefer to be directly involved in the delivery of the business's product or service, but for those who open a franchise on top of working a full-time job, this isn't an option. Think about which days of the week you'd prefer to work.
Examine your skill sets, what you've acquired in your previous professional experience, and what you're comfortable with. Are you comfortable with sales and cold calling? Do you like interacting with customers behind the counter of a retail location? Can you manage people? Many people are used to corporate employees, but in many franchise businesses, you'll have to manage minimum wage employees with high-turnover rates.
Do you like being out in the field working with clients and customers, instead? While you may have the relevant skills, you don't have to be an expert in your field, just yet. Take Falvey and air conditioning and heating ducts, for example. If someone asks you what you do, would you be comfortable saying you own a business that cleans the grease out of the commercial hoods in fast food kitchens? They're often huge moneymakers because they don't have a lot of competition. How to start a home-based franchise.
Narrow Down Your Options The sheer number of franchise concepts is nothing short of intimidating, but you'll be able to start crossing a good chunk of them off your list immediately, now that you know exactly what you want. It helps not to look at particular brands, but first at specific types of businesses retail, non-retail, industrial, or home-based, for example and specific concepts mobile pet grooming, tax services, or sign design, for example.
When you're doing so, be logical, not emotional. Driving to different houses and grooming hundreds of different dogs may seem fun to you or not, if you're a cat person , but does it meet the criteria you've just established about your goals, skill sets, and risk tolerance? Michael Greenstein, who owns a northern New Jersey-based franchise called Games2U, a mobile gaming service for birthday parties and community events, never particularly thought he would be in a gaming business catering to children.
But the business is already profitable in his fourth month of operations. This is something none of my experience in IT management relates to. However, if you're up to the challenge, you can also do the research on your own to find those rare perfect matches, and you should be aware that some brokers only represent specific franchisors.
Once you've gone down your initial checklist, it's a good idea to set a specific deadline to come up with some particular franchisors that are potential good matches for you. Dig Deeper: How to evaluate a franchise business plan. Do Your Due Diligence Congratulations. You've finally found a short list of franchisors that have made the cut. Unfortunately, your grand opening is still a long way off. Under the Franchise Rule, the FTC requires that you receive the document 14 days prior to signing any contract with the franchisor.
What are the ongoing royalty fees? Are there any other fees? Some franchisees have to pay an additional marketing or advertising fee. Franchises have a number of controls to ensure uniformity, such as restrictions on goods and services you sell, suppliers, how you operate hours, employee uniforms, signs, bookkeeping and accounting procedures , sales area limited to a specific territory and rights to termination and resale, and renewal.
How long has the franchisor been in business, what is the experience of the management team? Is there any history of bankruptcy? Some franchisors will include this earnings claim as item 19 in the FDD, which shows the average franchisee's revenue and profitability, according to Siebert. What type of initial training will I receive? What type of marketing and advertising support will I receive?
What type of other support will I receive? For example, will I receive an ordering system or point of sale system? Will the support and training be ongoing, with monthly visits? If you have any questions, be sure to ask your franchisor. It's always a good idea to meet with the franchisor in person to get a sense of their management style and to make sure you're comfortable with it.
Ask them what the day to day life of a franchisee at their business is like, or what types of traits or skill sets they have found to most likely lead to success. In addition to the actual FDD, be sure to evaluate the franchisor's business plan to really understand the concept and what drives customers in the door. The business plan should include a clear marketing strategy and detailed financial projections.
Don't be afraid to do some research on your own. You should look into what kind of competition there is for the business, as well as the failure rates, and any other special requirements. Falvey discovered that other air conditioning and heating duct cleaners tended to do poor work, so the market was ripe for a company that would do high-quality, professional work.
He also discovered, however, that he needed to get special licenses in the state of New York to do the work. Perhaps the single most important part of your due diligence will be talking to other franchisees. You can actually find their names and contact information in the FDD. Ask at least 10 to 15 of them about the training, the ongoing support, what types of returns they have made on their investments, and how much they were able to resell for.
In theory, a franchise has blazed the trail already and created a track record of success that you can check ahead of time. How to choose the right franchise location. Franchise Gator Franchise Solutions. Editorial Disclosure: These articles are editorially independent - that means editors and reporters research and write on these products free of any influence of any marketing or sales departments.
In other words, no one is telling our reporters or editors what to write or to include any particular positive or negative information about these products or services in the article. The article's content is entirely at the discretion of the reporter and editor. You will notice, however, that sometimes we include links to these products and services in the articles. When readers click on these links, and buy these products or services, Inc may be compensated.
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Match Media Group
Explore Dating franchises. Click a franchise to open their full profile or multi-select several franchises that interest you by ticking the relevant boxes and then click the 'Request Information' button at the bottom of the page to request FREE Information Packs from each. Dating Franchises and personal match making franchise opportunities. In recent years dating franchises have become increasingly popular. Speed-dating has also become so recognised as a concept, that it has also been incorporated into other industries, such as business networking, at events and exhibitions. The internet has also been fundamental in the growth of Dating as a business franchise opportunity. Dating franchises have grown, not just in numbers, but in the size of their dating membership, and the range of dating servies that they provide.
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Two years ago , John Falvey, then a specialist broker for Goldman Sachs on Wall Street, decided he needed a career change. After quitting his job, he came across an old colleague who was thriving as a franchise owner of a mobile pet-grooming business. So Falvey decided to get into the franchising business, too. After a four-month search, he now spends his time cleaning the ducts of air conditioning and heating systems as a Rockville Centre, New York-based franchise owner of DUCTZ, an Ann Arbor, Michigan air duct cleaning franchise organization. It's not sexy, but if it makes me money, maybe it's not that bad. But if you want to get into franchising, then you're in luck:
Request Information. Match Media Group is currently accepting inquiries from the following states: Check here to see how Guidant can help. Yes, in addition to receiving information on my selected franchises, I would ALSO like to receive a Free Consultation on how to buy a franchise. Please send me updates on the latest franchise opportunities. We never, EVER share or sell your information, email or phone number, to anyone other than the specific businesses you have requested.Franchises For Sale: The Best Way To Buy A Franchise