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Perfect Fit: Knowing if a Franchise is Right for You

PERFECT FIT: KNOWING IF A FRANCHISE IS RIGHT FOR YOU
 April 13, 2021 |  Franchise |  inspection industry, small business, entrepreneur

By Shauna Nilsen, 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
Shauna Nilsen, Recruitment Coordinator
Shauna has 12 years experience in research and development of policies and procedures, and training manuals. She started at NPI in our National Accounts department, assisting with placement and follow-up of all inspection orders and invoicing. Shauna now works with NPI's Director of Recruitment to onboard new NPI and GPI franchisees.


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