Today I’m going to give you insight into my deal matrix— how I choose what franchise to purchase. Over the years working as a franchisee, area developer, and serial entrepreneur I’ve developed a method for choosing franchises that will work for me. If you’re interested in owning a franchise and aren’t sure about working with a consultant, listen to this episode now! I’ll talk all about costs to consider, what industry to choose, and the franchise structure in place.
Cost is probably the #1 thing on the forefront of your mind when researching franchise opportunities. The cost can be prohibitive and you’ll often find yourself having to decline a good opportunity. Starting costs can be high. So how do you make the leap? Are there ways to overcome the ‘no’ and make a purchase?
If you have an investor willing to partner with you and cover some of the starting costs it can make a huge impact. Family, friends, or fellow entrepreneurs who know your work ethic and trust you to be successful are an asset. There’s always one thing I ask—that they are willing to be involved in the process from the very beginning.
Another important topic you need to consider is what industry to get involved in. As an owner, there are 4 things I always look for:
The industries I choose to be involved in allow for all of these conditions. Listen on as I’ll explain the ‘why’ behind my reasoning.
I’ve worked with 6 different brands and know what to look for. Keep in mind, there is no perfect franchise and they all require a time investment on your part. But there are some things that you can pinpoint that will make the process easier for everyone involved. So what’s this highly important factor?
Make sure the franchisor has the necessary experience to lead the franchise to success.
The franchisor (or someone on their leadership team) needs experience in franchising—it’s hard to trust and lean on someone if they have zero knowledge of the industry. Secondly, they need to be experienced in the industry their franchise is in. To find out red flags to watch out for, keep listening.
Franchise consultants tend to get a bad rap. Unfortunately, for many, it’s a sales job. So how do you know you’ve got the right person to help you through the process? Learn to know when you’re being sold to. If they’re pushy about a particular brand that doesn’t fit the qualifications you’re looking for, it’s time to move on.
You also want to choose someone who has experience. If a consultant hasn’t been a franchisee themselves, do they really know what they’re talking about? I strive to be real and tell it like it is. I will tell you if the cost is too high, if the industry isn’t a good fit, and will make sure you’re ready for the franchise you’re taking on.
This episode is full of my best advice for choosing a franchise and a franchise consultant. If you’re ready to dive in and choose a franchise to invest in, tune in for the full episode!