Starting a business by buying a franchise is quite profitable: you will get a ready-made working enterprise with trained personnel and a recognizable brand. It seems that getting a franchise is easier than ever, since there are many franchise store sites on the Internet. But here, too, there are pitfalls.
Instructions
Step 1
First of all, decide how much money you are willing to invest in the business. If the amount is substantial, then it makes sense to spend part of this money on the services of legal consultants for franchises. They will help you decide on the choice of a franchisor and buy a franchise as profitable as possible.
Step 2
But not everyone has substantial sums of money. If you decide to buy a franchise yourself, then take the time to study as many sites and franchise offers as possible. Carefully read the descriptions of all offered businesses. Once you have roughly decided on the franchise option, try to draw up your business plan for the development of your future company. It is needed not so much by the franchisor, as much by you, because it will help you figure out whether this company will really be a profitable business in the area where you are going to operate.
Step 3
It is important to think critically about the price of the franchise. Sometimes quite serious companies are offered at low prices. It is worth finding out what exactly is included in this price. It is possible that, for example, it does not include staff training. This seems to be a small detail, it can be considered as insignificant. However, in practice, you may face the fact that your business will simply not work with untrained personnel, and you will not be able to pay for training.
Step 4
Receiving a franchise involves working with a franchisor. However, how exactly it will be carried out depends only on the franchisor. In some cases, he can help with finding premises for a business, and with financing, as well as give advice on running a business. If you need such help, it should be discussed and included in the contract. Otherwise, you risk getting a "bare" company, in which you will have to invest a lot, not to mention the fact that at first it can be difficult to do an unfamiliar type of business without outside help.
Step 5
An essential aspect is the payment of money to the franchisor. In some cases, payment is made for the delivered goods (for example, if you buy a clothing store of a certain brand, then you pay for clothing of this brand, which comes from the franchisor). However, the contract may contain a condition on fixed deductions. Paying fixed amounts is a rather big risk, since it is not known how the business will develop. It makes sense to agree to such a condition only if the fixed deductions represent a percentage of profits.
