With thousands of franchise brands to choose from, the process of choosing a brand that suits your goals and personality can be daunting. This is especially true for franchisees for the first time. While each franchise system may have something big to offer, the burden falls on you to carry out due diligence and determine which investment will work best for you.
But where do you start? When looking for a franchise opportunity, how can you be sure that the concept you are seeing is a winner? In the multiple years that we have dedicated to the development of franchises, we have spoken with innumerable perspectives of different levels of experience and interest. Before buying a franchise brand, we always suggest that you ask these four questions:
1. Is this a brand I believe in?
In entrepreneurship, everything is reduced to passion. Are you passionate about the brand? Do you think what it means? Do you trust your products and services? If you want to have any chance of success, these fundamental questions should be answered affirmatively.
In the same way that Contender Esports routinely asks customers what brings them in to join us, we encourage potential franchisees to ask themselves this question. What are you looking for in joining Contender Esports? Most of the time, your response involves improving your financial position and well-being of your family and sharing a product that you really enjoy. In fact, the passion and enthusiasm for the product that I see in potential franchisees are unparalleled. When there are so many people totally dedicated to the mission and ideals of the brand, it extends to the employees and guests of the franchisee and constantly drives the momentum.
2. Is this a brand I can sell?
As important as the passion is the success of your brand, the viability is probably as important. When deciding between different franchise concepts, you must be completely honest with yourself. Can you honestly see that this brand works in your area? Is there enough demand for an entertainment product like this? Are there enough concepts in my area to cover this need? The answers to these questions can tell you a lot about whether you are on the right track or not.
Actually liking what you’re selling is critical. Whether they are in their stores or not, the franchisees must be 100% committed to devoting a significant amount of their time and resources to the success of their brand.
3. Does this brand finally meet my goals?
Because no one enters any business to lose money, due diligence is imperative. Take the time to research the brand you are looking for and delve into its history. Examine past success indicators, if available, find out how many stores are currently operating and see if they continue to grow.
The franchise opportunity website is the first stop, but go beyond the site as part of your investigation. Look at the FDD of the brand. Talk to other owners and founders in the system. Nobody can tell you how much money you are going to earn, but they can give you an idea of what to expect. Compare what you find with your initial goals to see if they match.
4. Do I believe in the people who guide this brand?
Remember that a brand is as strong as its leadership. As you begin to deepen a brand, you will begin to learn more and more. See what kind of experience the leaders of the brand have and what they have done to ensure that the concept continues to be successful. Do you share similar values and vision?
Consider all the areas in which you are not an expert and see what kind of help you can offer as you develop your business. A brand with strong leadership will provide the right amount of franchise support, which includes specific brands, marketing, real estate assistance, and operations. You want a leadership team that believes in your people and does everything in their power to prepare you for success.
Make the Decision
If you answered all these questions with a resounding yes, then the investment is probably right for you. Assume the risk associated with opening any business and confidently establish the path to your business objectives.