Your SlideShare is downloading. ×
0
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Franchise for Sale - Top 5 Things to Consider
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Franchise for Sale - Top 5 Things to Consider

99

Published on

Your success with that particular franchise has a lot to do with you -- not just the franchisor. Take some deep breaths, ask some hard questions of them (and yourself) before buying a franchise for …

Your success with that particular franchise has a lot to do with you -- not just the franchisor. Take some deep breaths, ask some hard questions of them (and yourself) before buying a franchise for sale. http://www.cafranchiseopportunities.com/franchise-for-sale/.

This presentation will provide you with the top 5 things you need to consider before you sign on the dotted line. It also provides you with a lot of key questions you should considering asking yourself and others as you go explore franchising as a potential business model.

Please like and share if you have found this helpful.

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
99
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ArticleFRANCHISE FOR SALETop 5 Things to Consider Canadian Franchise Opportunities www.CAfranchiseOpportunities.com
  • 2. FRANCHISE FOR SALE Top 5 Things to Consider Every franchise for sale is not created equal! Yes, that’s right . . . there are actually great franchises, good franchises and other franchises you shouldn’t touch with a ten foot pole. So how do you choose a franchise that is best for you? It’s not easy. You have to do your homework! Here are 5 Things for you to consider as you evaluate various franchises for sale. Page 2Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 3. FRANCHISE FOR SALE Top 5 Things to Consider Item #1: Profit vs. Revenue A franchise is not worth consideration if it cannot produce the profit needed to support your financial goals. Don’t get sucked into how great the concept might be or how big the target market is until you have a good idea of the potential profit. To begin, you need to understand the cost side of the equation, both one-time costs and ongoing operating costs. Once you have a handle on the costs, you need to calculate the potential revenue. Here are some questions to consider: 1 Is there an advertising pool to which franchisees must contribute? 2 Is the royalty fee a fixed-fee or a percentage of sales? 3 What will be your total operating costs and how will they vary? 4 What will be your average profits on a sale? If you want to dig deeper on this topic, visit Canadian Franchise Opportunities and do a search on “franchise ROI”. You will find articles to help further educate you on this topic. Page 3Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 4. FRANCHISE FOR SALE Top 5 Things to Consider Item #2: Can You Follow Rules? Before buying a franchise for sale, you need to understand that a franchisee is part of a team, and the franchisor sets the rules. You have to be a good follower, not one that dreams of new ways to do things better, only to get frustrated because you can’t change them. The key to franchise success is a consistent customer experience from one franchise to the next. The public expects the same experience from franchise to franchise. So ask yourself: 1 Do you have a history of being a good follower? 2 Can you be a team player or would you prefer to call all the shots? 3 Do you have the type of personality that wants constant change? 4 Do you have the management and operational skills needed to run a business? 5 Are you ok with operating a business and not actually owning it? Most franchisors want those that are ready to follow the rules, instead of telling them how things could be done better. Page 4Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 5. FRANCHISE FOR SALE Top 5 Things to Consider Item #3: Family Support? Many franchisees often underestimate the work involved in starting a franchise business. Even though the business may be clearly defined, it doesn’t mean that it is going to be easy. Few franchises start off with a bang and continue in the same manner. You will have to build the business. That may mean you’re washing windows and mopping the floor at midnight. This may mean family time is sacrificed during the startup phase. Until profits allow you to hire staff or services, you may be the only member of your maintenance staff. You might want to sit around the table and ponder the following with your family: 1 Can the family get by with little to no income for a period of time? 2 Is it ok if we push off buying that new car for a couple more years? 3 Can others handle the extra chores around the house? 4 Will it be ok to not fund the retirement account for a few years? 5 What if we have to secure a home equity loan? Is that even an option? Make sure all family members support your decision without conditions or you’ll have serious conflicts. Page 5Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 6. FRANCHISE FOR SALE Top 5 Things to Consider Item #4: Commitment? Make sure you have a passion for starting and operating a business. Also make sure you have a strong desire towards franchise ownership. Both will boost your commitment. A strong commitment to the business is needed to get you through the tough times. To test this passion and desire, ask yourself: 1 Are you ok with only owning the rights to operate the business and not own the business outright? 2 Does franchise ownership support your financial, retirement, and personal goals? 3 Can you commit to 5 or 10 years to this business? (typical contract lengths) 4 What happens at the end of the contract? What’s your exit strategy? 5 What the history of others exiting their franchise? You need to know that you’ll eventually get out of the business what you have put into it. Be disciplined in your approach and love what you’re doing. Page 6Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 7. FRANCHISE FOR SALE Top 5 Things to Consider Item #5: Money? One of the top reasons franchises fail is because of the lack capital. Entrepreneurs are an optimistic bunch. They tend to over estimate their planned success and underestimate the amount of capital needed to get the business to a self-sustaining level. The result is a failed business simply because the “runway” to get it off the ground was not long enough. Another key point to keep in mind when evaluating a franchise for sale is how resilient is the business? Can it survive difficult economic times? What is the track record of the franchise in difficult economic times? Although Canada has been somewhat immune from the global recession in the past few years, that doesn’t mean it won’t see an economic down turn. Remember, a franchise is not a guarantee of a good, steady income. It’s the goal, but not a guarantee. Make sure at the outset you have adequate capital to sustain yourself for one to two years — just in case. Also, look for a franchise that succeeds even when times get tough. Page 7Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 8. FRANCHISE FOR SALE Top 5 Things to Consider Summary Choosing a successful franchise for sale is one thing, picking one that is a good fit for you is another. You need to do your homework and don’t underestimate the work and capital it is going to take to make that business successful. Keep in mind the following as you examine each franchise: • Will it produce the profit needed? • Can I be a team player? • Do I have the support of my family? • Do I have the commitment needed for success? • Do I have the capital needed for success? Before selecting the franchise for you, do you homework and do a thorough franchise evaluation to increase your chances of finding a franchise that is a good fit for you. Page 8Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com
  • 9. Visit Us www.CAfranchiseOpportunities.com Check Out Our Free Tools Page 9Canadian Franchise Opportunitieswww.CAfranchiseOpportunities.com

×