Taking on a franchise has its share of challenges. These include high start-up costs, royalty payments, and limited creativity when running your business
Starting your own business can be time-consuming, frustrating, and stressful. So you might ask yourself, why not open a franchise instead?
You’ll get to benefit from a business model that comes with a loyal client base and extension support — while being your own boss at the same time.
Taking on a franchise also has its share of challenges. These include high start-up costs, royalty payments, and limited creativity when running your business.
In the guide below, we’ll dig into these pros and cons, along with steps on how to start your own franchise.
The first step is to find a franchise opportunity that fits your goals, personality, and skills.
With so much choice, it’s easy to get overwhelmed. Here’s what you should consider to make the right pick.
Start doing research on your desired franchise and franchising in general
At this point, you should have a clear vision of what you're going for, including the role you’re seeking and the type of franchise to enter.
Now's the time to choose a franchise to collaborate with. Here are some things you’ll want to know to make sure you’re choosing the right franchise:
Just like any business, you’ll need to make investments to get your business up-and-running. These include:
Franchises don’t typically invest their own money to market your business — that’s going to be up to you.
Do some research on what to expect during your work relationship. Doing your homework in advance helps you know what you’re getting into.
Potential franchisees are often invited to a “discovery day” to find out if you’re a good match. Use the event as an opportunity to ask questions such as:
Support is an essential factor to consider when partnering with any organization. Be sure to find out the type of training and other support you’ll receive as you get started and how long it lasts.
Take an in-depth look at what you're up against. Is there currently a lot of competition in your area? Are there any ways you can stand out from everyone else?
Consider how the market will look in the future. How much is your city projected to grow? Are there any other franchises expected to crop up? Always be on the lookout for possible changes in the industry so you can adapt.
So you've done the research, and you’re ready to be part of the franchise. The next step is to review the franchise agreement they send you.
Reviewing the agreement is one of the most vital steps to follow. You can't afford to skim through the contract and get yourself into trouble afterward. If possible, we highly recommend that you hire a franchise attorney to review the agreement together.
You’re going to need funding to get your new franchise business off the ground. Here’s a list of three financial options you might consider:
Once you've signed the agreement, you'll go through training under the franchisor to learn the business trade. You’ll be learning everything about:
Effective training is crucial to success. You want to make sure you’re following the experts so you can avoid pitfalls and become profitable faster.
Franchises give you the benefit of not going it alone if you want to start your own business, but there are a few hurdles with the signup fee, lack of ongoing support, and typically a lot more to pay back before you reach profitability.
At Hoist, we do things a little differently. Our mission is to make it simple and affordable for outstanding professionals to build outstanding businesses. We invest time, training, and capital into you and give you the tools you need to build a well-oiled and scalable business.
Each of our clients goes through our unique training method to launch their own painting business. Here’s how our model differs from franchises:
When you’re looking to start a franchise, ask yourself what you want to achieve. Do you want to own a franchise or own your own brand? If your goals include profitability within a few months, the freedom to build your own brand, and support along the way, Hoist can help.
Interested in collaborating? Learn about our New Owner Program. We’d love to discuss a strategy to help you build your own million-dollar painting business.
We're Hoist. We help entrepreneurs successfully run and grow painting businesses. Learn about how to build your company by following along on Instagram and Linkedin.
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