11
Apr

Important Lessons Before Starting a Franchise

There are few jobs that require more of a commitment than owning a franchise. Not only are you responsible for the success or failure of an entire store, but you must get the franchise working if you want to see profitability and a return on your investment. This means that people who are considering owning a franchise must know about the following potential issues before making a final decision.

1. One Location

Franchise owners are typically tied to the store that they own. This means that for the entirety of you owning the franchise, it is unlikely that you can move to another city or get a job in another location. Franchise agreements often explicitly forbid you from trying to get another store or promoting your services in another city or state.

For people who like stability, an opportunity like owning a UPS store franchise is a perfect arrangement. However, someone who wants to move around every few years may want something different out of their professional life.

2. Total Costs

It is very important to have a detailed discussion about the total costs of owning a franchise. This is not limited to the start-up money you have to add or the franchise fees. It is also vital that you consider the fact that your franchise may not make a lot of money the first few weeks and months. If you have a savings nest-egg to tide you over until the franchise starts showing profits, you are in good shape.

3. Track Record

Even if the company you are starting a franchise with is a household name, you need to consider their overall franchise record. Some companies, such as UPS, have a huge history of successful franchise owners. In contrast, other companies do not have the same record.

The name of the franchise is not the only important thing to consider. If you know that a company has a setup where they support franchise owners and give them assistance, you are going into business with the right company.