Franchises are often marketed as a way for entrepreneurs to get into business. They (should) offer a turnkey business solution. All the entrepreneur has to do is pay the fee, and start, right?
You’re buying a system, not success
Contrary to popular belief, franchises do not ensure success. Even the most successful franchise of all time – McDonald’s – has had stores fail.
When you buy into a franchise, you should be given a number of things:
Many businesses who have one successful outlet try to franchise their business. This is a way for them to spread their brand, while leveraging success on the efforts of other people.
As a franchisee – you need to do your due diligence to ensure that the original franchise is successful, and duplicatable. Are they in a location that lends themselves to a unique success? Is their product hyper-local – and if you do the same product, will you have a different level competition than they did? These are the kinds of questions you should ask.
Ongoing Relationships are Key
Buying a franchise is not one-and-done. You need the ongoing relationship with the franchisor in order to succeed. They are selling you a business system, and they are selling you access to their experience. If you have to figure it all out on your own all over again, then you haven’t saved anything – and you’ve wasted time and money.
Here’s a list of low-cost franchises: https://www.franchisedirect.com/low-cost-franchises/
Make sure you do your due diligence!