2016 continues to be a great year for franchise and that trend is expected to continue. As a matter of fact, the International Franchise Association (IFA) predicts the number of franchises will grow 1.7 percent and add more than 275,000 jobs to the economy by year’s end. Despite the risk there is with franchising a business – and there is, sometimes big risk – people continue to invest in franchise opportunities.
The key to making it work is ensuring investors are apt to enjoy the opportunity. This might not be as easily measured as some of the statistics, but there is clear evidence happy franchisees are the most successful. But how do you ensure it’s your franchise that will make an investor happy? Here are a few tips:
Franchisees that feel as if they did their “homework,” pre-investment are among the most satisfied. The more interaction they have with you before the investment the better. They also need to speak to others in the field. Experts recommend speaking to at least 15 former franchisees before taking the plunge. You need to research annual data and profitability before taking the next step. Knowing what’s ahead makes it easier to make the best possible decision.
In addition to understanding the franchise opportunity, it’s also important to have a firm understanding of your own goals and desires. What is your reason for turning an existing business into a franchise? The more you understand about your goals the better, too. There’s a big leap needed to go from where you are now to being a franchise, and you want to make sure your intentions are aligned with your next step before moving forward.
If you are considering franchising your business or you want to grow your franchise brand, give us a call!