How to Buy a Health and Wellness Franchise

The health and wellness business is highly lucrative in today's health-minded market. Finding the right store or service to provide to a particular community, however, takes more than a little money. Knowing the health needs of a particular area and buying into the right franchise can be complicated.

Difficulty: Moderate

Instructions

1. Determine what market interests you in terms of health and wellness; think of things that are relevant to your life that you can relate to. Write down a list of stores, shops, and services that you frequently take advantage of that utilize health and wellness products.

2. Do some market research in your area on what kinds of health stores and services are offered. Plug into an unexpressed market need. For instance, if your city has plenty of gyms but no juice bars, or plenty of juice bars and no exercise equipment shops, then you should be looking at what is missing.

3. Read the franchise's website for further information on how to obtain directions and procedural standards for securing a franchise. Look for trade show opportunities where you can go and interact with franchise owners and receive one on one information on the nature of the franchise and their pros and cons.

4. Conduct interviews with franchising agents. Ask pertinent questions such as what the pretax net profits are, what training programs are offered, if any additional working capital is necessary, how is the company supplied, and what support the franchise offers to franchise owners. Obtain a copy of the franchise provisions and regulations and go over it with a knowledgeable business attorney. Make sure that the contract meets your needs and that it is a secure investment for you before jumping in.

5. Begin writing your detailed business plan after determining your net worth, credit rating, and the viability of the health and wellness franchise you have chosen. Determine whether you will receive financing from the franchise themselves or if you will need to seek financing elsewhere.

Tips & Warnings

• Ensure that you are aware of franchising laws and regulations and that you are protected in your business endeavor.
• Make sure that you are secure enough financially to support yourself and the franchise for at least a year into the endeavor. Remember that start up costs are high for franchise stores.
• Make sure your credit scores are good if you need to obtain financing.
• Franchise something that fits into your community's health and wellness needs. For example, if you are in a community that is cold and rainy, franchising an outdoor water sport park might not be the best option.
• Do not enter into an agreement with a franchiser that practices active encroachment, or opening another franchise within a close distance to an existing one. It is a common practice among franchisers and can affect your sales.

Resources

• Read this helpful franchising guide for newbies.
• Here's a great website with franchise information.

[misssophie]

on 6/16/2008 I heard that great health and wellness franchise is Healthy Times Newspaper. Really low start-up and they offer a lot of support.