How to Select a Franchise

Owning a franchise is a lot like owning your own business, even though you may have some support from a corporate office. The success of the business will depend largely on you. When you are picking a franchise, you need to factor in many aspects of the business to make a selection that will work for you. Obviously, you should not make these decisions on your own but with the help of multiple professional advisers who have your interests at heart.

Difficulty: Moderate

Instructions

1. Consider location. It will help you narrow the field significantly to consider only franchises that are viable in your immediate area and with your local markets.

2. Determine how much time you have to spend. Some franchises require only a few hours of maintenance a week, while others require constant attention. If you are adding the responsibilities of a franchise to a current job and family, then you will have very different time requirements than if this franchise is going to be your full-time occupation from the word "Go!"

3. Evaluate monetary parameters. Almost all franchises require an initial financial investment. This amount can range from a thousand dollars to hundreds of thousands. Knowing how much you can invest up front will also help you narrow your options before you make a decision. Work with a financial adviser who is not associated with any of your potential franchises to determine how much you can spend wisely.

4. Remember the Internet. Many online franchises are less expensive than off-line ones and enable you to cater to markets anywhere in the world. However, they often require additional training and knowledge to run them successfully, so make sure you have the background and the support to run an Internet franchise before you buy.

5. Examine your goals for growth and expansion. If you do not want to expand or ever own more than one franchise, then you will not need to evaluate this aspect very closely. However, if you hope to own multiple stores or even work overseas, you will need to select a company whose policies are compatible with these goals.

Tips & Warnings

• Whenever you invest in a franchise, you are making a business decision that cannot be 100 percent guaranteed, no matter how much the company would like you to think so. Make sure that you have good advisers and that you will have serious backup from the company as you begin working with your new franchise.

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