Qualify yourself: Take full advantage of any qualification tools that the franchisor provides, especially on the web and over the phone. For example, at Case we have a remodeling business aptitude test that you can take to see if this business is right for you. Make sure that you meet the minimum qualifications posted and ask the franchisor for examples of successful as well as unsuccessful franchisees. Often times this information will help you get a clearer picture of how you would fare in the business. Remember that the franchisor will have a qualification process as well and allow several weeks at a minimum to complete that part of the process if you choose to do so.

 

Know your numbers: Before going into business it is imperative that you know your financial requirements and capabilities. To open a new business, most Franchisees obtain business capital or at minimum a line of credit. Case Franchisees also complete their own version of a three year business plan provided by Case. Make sure that the franchisor has these resources, including the underlying assumptions and metrics of the business and that the Franchisor can provide assistance with obtaining capital. You should also make sure that you know your personal financial requirements so that they can be factored into the business plan. Knowing your numbers and having a tight plan mitigates risk.

 

Do you have the full support of your family? Starting a new business, franchise or otherwise takes an enormous amount of effort and time so having family support is critical. Having a unified family “commitment” to the business will allow you to focus on the business and stay positive, even in difficult periods.

 

Is the Franchisor in the business that they are franchising? There are more franchise opportunities popping up every year. Make sure that the franchise you are looking at has some real experience in what they are franchising. There are some franchise opportunities that have limited experience in the business they are franchising and some are even launched with just a pilot operation. Some are one business model that is usedto cross over several other businesses. Once you are a franchisee, You will be relying on the franchisor’s underlying assumptions so it is critical that the franchisor can provide as much data as possible, which has hopefully been gleaned from hard experience.

 

Is your market appropriate and available for the business you are considering? Make sure that you check with the franchisor to see if your area is available. Many franchisors have a lag time of six to eight months before a new office is launched so the office may not be listed on the franchisor’s site. Most importantly, make sure that both you and the franchisor agree on the viability of your territory. You must provide the local knowledge and franchisors typically will use several demographic indicators to determine viability. Using these two pieces of intelligence you can very accurately determine the feasibility of your market. Most franchisors will be very reluctant to grant a franchise unless demographic minimums are met.