There are more than 1,500 franchise systems in North America, but not all of them are right for you. In order to make the best choice, you need to make sure to avoid these common mistakes when investigating franchise opportunities. We’re here to help you do just that.
Mistake 1: Assuming Franchises Only Exist In The Food Industry
When most people think of franchises, they undoubtedly think of restaurant chains — and with good reason. Fast food and full-service restaurants account for more than 34 percent of all franchise businesses. However, not everybody finds the food service industry appealing, and they end up avoiding franchise opportunities as a result.
The truth is that franchises come in all shapes, sizes, industries and styles. They even come on wheels. That means that you can find a franchise that aligns with your personal and professional goals in an industry that you actually want to work in.
How To Avoid It: Explore All Of Your Options
Get to know the different types of franchises available by checking out the exhaustive list on franchising.com. This resource features profiles of more than 2,800 franchises across the globe, and you can narrow your search by industry, location and operational model. If you are new to the franchise world, this is a great place to start your search.
Mistake 2: Performing Online-Only Investigations
There are many great resources for investigating franchises online — company websites, social media, franchise industry blogs and the Small Business Administration’s list of approved franchises, just to name a few. However, it’s important to get a more complete perspective on a franchise before making a decision, and that can’t be done from behind a computer.
How To Avoid It: Find Alignment By Taking Your Search Offline
If you are serious about starting a franchise, you need to put down your PC. Book a trip to a franchise convention in your area to meet with franchise representatives face to face, pick up the phone and call current franchise operators to get their input and their perspective, and take advantage of the franchise’s discovery day, where you can spend time learning the system and getting to know the key people within it.
Mistake 3: Not Asking For Enough Information
During the investigation process, many franchise candidates will shy away from asking for too much information out of fear of seeming too anxious or too bothersome. Others worry about coming off as too committed, as they confuse asking for information with signaling their intent to sign a deal.
Buying into a franchise is a huge decision, and you need all the information you can get in order to make the best decision possible.
How To Avoid It: Ask For Everything — Repeatedly
You need to gather as much information as possible, so don’t be shy. Turn over every rock, ask to speak with every representative and thoroughly review the franchise disclosure document (which franchisors are required to provide to you). If there is anything missing from the document, or if you need more information or clarification, ask!
Mistake 4: Keeping Your Search Too Broad
With thousands of franchise opportunities in the marketplace, it’s important to quickly narrow your choices so that you can focus your time and energy on the best options. Too often, however, inexperienced franchisees will spend countless hours investigating systems that more seasoned franchise operators would know to quickly cross off their lists.
How To Avoid It: Learn How To Spot Franchise Red Flags
Check out our video where we explore five franchise red flags, and be vigilant in spotting these warning signs.
Mistake 5: Rushing Or Waiting
Good timing is essential to success in business, and that is especially true when investigating a franchise. If you make a hasty choice, you could well end up regretting it; but if you take too long, or if you waffle in your decision, the opportunity may disappear. It’s important to strike the right balance between prudence and action.
How To Avoid It: Have A Timeline And Plan In Mind
A thorough investigation should take between 30 and 60 days, and you should try your best to stick to this timeframe. Before you begin, make a list of all of the things you need to accomplish — completing forms, reading brochures, attending events, interviewing current franchise operators, etc. — and create a schedule that will allow you tackle all of the items on the list before your deadline is up.
Mistake 6: Giving Up
Investigating different franchise systems is hard work, and the process can take a lot out of you. That’s why many would-be franchisees never make it to the finish line; they just give up on their dreams before making them a reality.
How To Avoid It: Stay Focused On What’s Motivating You
You started your investigation for a reason, and you need to remember it. Whether you are looking for better compensation, more work-life balance or greater control over your future and your finances, make sure to remind yourself of the benefits that await you after making the transition to franchise ownership.
Mistake 7: Thinking The Decision Is All Yours To Make
Good franchise systems don’t just sell franchise locations to the highest bidder, they award them to the best candidate. Thus, they will investigate you as thoroughly as you investigate them.
Too often, however, aspiring franchisees are not prepared to pass the test, and they think that having enough money is the only qualification that matters. That couldn’t be further from the truth.
How To Avoid It: Be Prepared
Put yourself in position to succeed — and to be selected — by reviewing our list of four preparation tips for first-time franchisees.
Mistake 8: Not Talking To Us
When searching for a franchise, you want to find one that is as committed to your success as you are, is part of a growing industry, and has a proven model for producing revenue and happy franchisees. Bin There Dump That offers all of that — and more!
How To Avoid It: Investigate Us
We’re confident that we are one of the best franchise opportunities for new franchise operators, and we invite you to learn more about us so you can feel just as confident in your decision to join our team. Start the process by downloading your free franchise kit today!