Franchising is a significant part of the U. S. economy generating over one-third of all U. S. retail sales, according to the U.S. Chamber of Commerce, from more than 750,000 franchise establishments. Becoming a franchise owner presents some challenges and offers some great choices from among around 2,500 franchised concepts.
Why Become a Franchise Owner Instead of Starting Your Own Business?
Starting any business doesn’t offer guaranteed success but becoming a franchise owner offers many benefits versus starting from scratch. Starting a franchised business offers lower risks than starting from scratch because the general business elements, systems, and support processes have already been created. And the prospective franchise owner gets to thoroughly research a franchise concept before investing in it.
What You Need to Know Before Becoming a Franchise Owner
Before becoming a franchise owner, it is important to examine yourself to determine what you like and dislike and what will motivate you. Do you have the personality to fit into someone else’s system and to follow their rules? What kind of concept fits you? What is your “end game” plan?
Find out how much time you will need to invest in the concept. Starting a new franchise will require a significant investment of time. It’s not a new 9-5 job.
Find out from other existing franchise owners what it takes to be successful with that franchise.
Determine what the franchisor is like. How long have they been in business and what is their success track record? What assistance is provided in the areas of finance, training, marketing, and technology?
Find out how much the franchise will cost including the franchise fee, equipment, inventory, and working capital. It is critical to have sufficient capital to operate, thrive, and grow. How will you finance the business?
Seek Expert Financing Assistance
Contact Growth Capital Team, based in Saratoga, CA. Whatever your financing needs or dreams may be, we want to work with you. We have the capabilities to help your business with just about any of its commercial financing needs.