Franchisors have strengths and weaknesses in their business model and it is important to have complementary alignment between the franchisor and franchisee. As a prospective franchisee, doing your due diligence on multiple aspects of the business opportunity and understanding the tangibles and intangibles is highly important. By Nathaniel Skjoldager
Minimize Your Risk, Maximize Your Certainty Before Investing in a Franchise
Franchisors have strengths and weaknesses in their business model and it is important to have complementary alignment between the franchisor and franchisee. As a prospective franchisee, doing your due diligence on multiple aspects of the business opportunity and understanding the tangibles and intangibles is highly important. There are many viable business models, but that doesn’t mean that it is a viable business model for you. Just because a specific franchise is good for one person, doesn’t mean that it is good for you. This is why the “Alignment Factor” holds a lot of weight in determining a business vision match.
Alignment needs to happen on multiple levels when selecting a franchise, including:
- Investment Alignment
- Lifestyle Alignment
- Timing Alignment
- Operational Preferences & Skills Alignment
- Cultural Alignment
- Territory & Market Opportunity Alignment
- Business Criteria Alignment
- Realistic Financial Goal Alignment
- Short & Long Term Vision Alignment
Alignment is needed to achieve a solid business vision match!
Summary: Selecting a franchise is a big decision and has an impact on you financially, personally, and professionally. For this reason, if you are considering a franchise and you are interested in getting educated on the franchise community, funding approaches, receiving tools, and resources to help you navigate the franchise-selection process, then it is important to align yourself with a franchise consultant.
FranServe is the world’s largest franchise consulting and expansion organization. The goal of a franchise consultant should be to help you find the franchise that aligns with your lifestyle, your investment budget, your financial, personal and professional goals, and to make an informed decision.
The final decision is between the franchisor and you (prospective franchisee) to determine if you align well with each other. There are steps you can take to minimize your risk and maximize your certainty before signing a franchise agreement.
Don’t: Try to find a franchise all by yourself; avoid being overwhelmed during this important decision.
Do: Work with a FranServe franchise consultant and receive free franchise consultation.
In closing, my 12-year-old nephew wrote a metaphor for a school assignment and I wanted to share his sage advice:
Life is a series of doors; some you open, some you don’t. What you choose is what you get. Doors are choices so choose wisely.
– Nathaniel Skjoldager
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Pamela Currie has 20+ years in franchising. As a Certified Franchise Consultant, Pamela helps individuals make an educated and informed decision when selecting a franchise. Pamela enjoys being a resource and partner in helping people find a franchise that aligns for them. Interested in franchise ownership? Contact Pamela at Pam@FranchiseIntellect.com for a complimentary consultation.