Before taking on a franchise, ask these questions

If you're thinking about taking on a franchise, I recommend that you ask yourself the following questions to check the fit of the franchise with your personal and financial goals.

  • What level of support do I need? You may decide that working through the setup process on your own and learning as you go is best, or maybe you want to choose a franchise that will give you an in-depth setup process and more support.

  • How much risk am I comfortable with? If you need to take on debt to setup the franchise and pay staff, will you be able to comfortably manage that debt?

  • Do you trust the franchisor? Do your research into the franchisor to ensure you’re happy with them as a business person. Chat to other franchisees if possible to give you a good idea of how they’ve managed relationships in the past.

  • How do I want to run the business? Make sure the way the franchisor runs the business works for you. Some franchisors allow a lot of freedom while others have strict parameters.

  • How much can I afford? Make sure your first budget is realistic. It needs to take everything into account to ensure you’ll have enough money to get you through the first few months, while you get the franchise off the ground.

Your answers to these questions will give you a better idea of what you're up for. The franchisor should be available to answer your questions and we would be happy to give you our perspective as well - just get in contact with us.

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