Every year, the franchise model fascinates countless entrepreneurs. However, the host of networks that exist does not make the choice easy. What franchise choose to get started ? The advice and criteria to follow to successfully make a good decision are here.
What does the term franchise mean?
A franchise can be seen as an agreement (contract) which links an entrepreneur to a company with a view to commercial collaboration. Generally, the franchisee (entrepreneur) receives authorization from the franchisor (company) which allows him to exploit his label or his marketing concept. The franchisee benefiting from this label to develop its activities must, in return, pay royalties to the franchisor. These are either fixed or proportional to the turnover generated.
Choosing a franchise to get started: what should you look out for?
Answer the question “What franchise choose to get started ? », requires considering a certain number of determining factors for a judicious choice.
Take into account the sector of activity in which you want to invest
The first question to resolve is the question of what we want to do. Having a passion for creating a business is certainly necessary to get started as a franchisee, but it is important that you love the business covered by the franchise you are aiming for. Indeed, operating in a sector that you love is the first key to success given that you constantly have motivation. As soon as this is clear to oneself, what franchise choose to get started, becomes easier to find.
Consider the necessary skills
Choosing a franchise to get started requires that we have:
- business management skills;
- marketing skills;
- communication and people management skills
- a good knowledge of the field of activity for which one has opted.
Whatever franchise area you choose, it is essential to have a solid foundation in the profession, or at least in what constitutes the essential part of the profession. It is precisely because we cannot be brilliant everywhere or master everything that franchisors offer training. Then, it is practice that provides the rest of the necessary knowledge.
Choosing a franchise to get started also requires taking stock of one’s strengths and limitations. The skills assessment will allow you to identify your strengths and areas where you need to improve. It is also the way to possibly reveal the recruitments that we must target to overcome all the weak points and guarantee a successful entrepreneurial experience.
The popularity rating of the franchise to choose is a crucial element
Choosing a franchise to get started, it means being linked to a brand image, and this encourages the start of activity without necessarily having to prove any expertise before seeing its first subscribers arrive. This is why you need to find out about the franchise you are considering.
Here is what you need to know first:
- It is absolutely necessary to verify that the franchisor really owns its brand and that it is protected (INPI).
- Is the budget allocated to communication and marketing large enough to properly promote the brand?
- Today more than ever, no business can prosper without investing significantly on the web and on social networks. It is therefore crucial to verify that the brand is very inclined to marketing automation. You must seek to know the referencing policy that the franchisor deploys to ensure better visibility for its brand.
In order to choose a franchise to get started, we can contact the targeted franchisor to discuss the impacts of marketing campaigns on the returns obtained; this will also make it possible to determine the popularity of the brand.
Choosing a franchise must take into account the strength of the market
Starting a franchise is a decision that requires caution and attention to detail. It would be downright suicidal to invest in a franchise without knowing whether the market is promising or losing momentum. We can rely on statistics or talk with current franchisees to get a more or less clear idea of the state of health of the sector.
A market study is required. If you don’t know how to do it, you should seek the services of an expert. Such a study will facilitate not only the choice of franchise, but also the procedures relating to financing requests.
So, choose a franchise to get started (whether it is a painting franchise, a building franchise or other), must take into account strong demand and the sustainability of the market. The question of competition must also be examined. Indeed, a franchise can appear well positioned without being so. It is then necessary to check whether it stands out against the competition. Likewise, young franchises are showing themselves to be ambitious and successful.
The cost of the initial investment and the fees linked to the franchise should also be studied carefully, knowing that the franchisee’s personal contribution can be around 40%.
What franchise choose to get started ? The answer remains individual depending on all the aspects to be considered.