13 April Perfect Fit: Knowing if a Franchise is Right for You April 13, 2021 By sma Franchise entrepreneur, inspection industry, small business 0 PERFECT FIT: KNOWING IF A FRANCHISE IS RIGHT FOR YOU April 13, 2021 | Franchise | inspection industry, small business, entrepreneur By Sammi Marcellus, NPI, Inc.'s Recruitment Coordinator Franchising has long been a popular business venture in both the United States and Canada. In 2019, almost 800,000 franchise outlets employed over 8 million people in the U.S. and almost 2 million Canadians worked for 76,000 outlets. Needless to say, if you’ve decided that franchising is right for you, you’re in good company. While it’s an exciting choice to go out on your own, it can also be intimidating. With so many different options out there, how do you know which will be the best for you? Read on for our rundown of the most important factors to consider. Determining Costs While researching, the first thing you might notice about a franchise is the price tag. Franchises can vary on their upfront costs, so it’s important to evaluate what you’re receiving in your start-up package. Most companies will have everything broken down in their franchise disclosure document (FDD) so you can see exactly what you pay for. From here you can better gauge if the cost is worth it. Are there any large costs you pay for? What does your ROI look like over time? Thinking about questions like these as you look at pricing breakdowns tells you if it’s worth the investment. Opportunity for Growth Next is figuring out how much your business can realistically grow. Everyone has dreams of becoming the biggest and most profitable franchise, yet that’s not always possible. Higher operating costs coupled with other expenses make expansion harder to attain for some franchise owners. You may be limited to a certain area or have competition, possibly from other owners in the same franchise, restricting you. It’s even more difficult to get big if you don’t have a team at your corporate headquarters backing you up. Envision what you want your business to look like down the road, and what the franchise offers to get you there. Aligning Values You probably have your own core values that drive you each and every day. It could be helping those less fortunate, being trustworthy, or going out of your way to show kindness towards others. These beliefs are important to you, and you should choose a company that has similar ones. Read up on their mission statement and look at how people view the franchise you want to join. Are there more negative or positive reviews? What about people who work within the company and what they have to say? It could be worth your time to reach out to current franchisees and hear their opinions. Pay attention to any commonalities you come across and make a list of your pros and cons to revisit. Company History A company’s performance over time is a good measure of how they’ll perform in the future. You can see how they’ve grown through the years, and how well business has been sustained. Are they continually adding new locations, or have they seemed to slow down or stall? How well have they survived economic challenges? Chances are that the longer a business has been around, the better prepared they are for these kinds of situations. Moving Ahead Lastly, you want to make sure you sign with a company that’s always staying up to date. This includes everything from their best practices to their marketing plan. An easy way to check this is by visiting their website and their social media profiles. Look at the quality of work and how easy it is to navigate their pages as a customer. These can be a good indicator about what the company prioritizes and their capabilities. A company that’s always ahead of the curve and building towards the future is less likely to have you falling behind your competition. If you’re interested in starting a franchise with NPI, find out more about what we offer by checking out this blog and requesting a FREE info packet today! As NPI’s Recruitment Coordinator, I’m always available to walk you through the purchasing process and answer any questions you might have. I look forward to hearing from you! About the Author Sammi Marcellus, Recruitment Coordinator A member of the Nebraska Army National Guard since 2017, Sammi assists the NPI recruitment team through building relationships with military veterans who are interested in franchising. Sammi has a background in customer service and is an asset to the NPI corporate team with her ability to relate with active and former military, guiding them through our recruitment process. Comments are closed.