1851

For many entrepreneurs, the decision to go into franchising stems from the yearning to go into business for themselves… but not necessarily all by themselves The franchise model means that a person is putting their money into a business that’s proven to be successful. However, there are still quite a few decisions to be made in terms of the business and how they’d like to set it up from the get-go. With around <a href="https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=consider-these-three-factors-before-beginning-the-franchise-discovery-process-2711964" target="_blank" rel="nofollow">750,000 franchise concepts</a> from which to choose, it is essential to establish the fundamentals of what one wants their business to be before diving into any specific opportunities.So, if the franchising route is the one you choose to travel, have no qualms. <a href="https://1851franchise.com/">1851 Franchise</a> highlighted three key factors that entrepreneurs should take into consideration before beginning the discovery process.&nbsp;1. BudgetFirst and foremost, anyone looking into buying a franchise will need to determine the amount of money they are willing to invest in a business. As the <a href="https://www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=consider-these-three-factors-before-beginning-the-franchise-discovery-process-2711964" target="_blank" rel="nofollow">Federal Trade Commission (FTC) points out</a>, there are multiple costs and fees typically associated with franchising in terms of initial and ongoing fees. In almost all cases, there’s an initial franchise fee to be paid upfront in order to get started, and this fee can range anywhere from a few thousand dollars to a few hundred thousand dollars. What is this fee? Franchisees are paying franchisors for the rights to the business, which includes the right to use the brand name, any assistance they’ll provide and any opportunities they’ll supply you with in the future.&nbsp;In addition to the initial franchise fee, you’ll be expected to front the operational costs, which can include everything from real estate and rent to inventory and equipment. And, more than likely, you’ll have to pay your franchisor a royalty fee based on monthly or yearly gross income. Lastly, your franchise agreement may require you to contribute to an advertising fee to build local and national awareness for the brand.&nbsp;Expert tip: When determining your exact budget, ask yourself: How much do I have available right now to invest? How much am I willing to borrow in order to pursue this opportunity and continue down the line? What other fees will I be expected to pay in the future as I continue down the line?2. Level of involvementAnother factor to be taken into consideration is the level of involvement in day-to-day operations you’re seeking. Are you looking for a business that’s home-based, office-based or retail-based? How much time can you commit to the business? Do you want a business that’s 9-to-5 or one with a more flexible schedule? This is an important factor to consider, as it can determine what franchise opportunities are a good fit for you.Your <a href="https://r7fdc.com/3-types-of-franchise-ownership/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=consider-these-three-factors-before-beginning-the-franchise-discovery-process-2711964" target="_blank" rel="nofollow">model of ownership</a> should also be considered. Do you want to be the owner/operator, an executive/absentee owner or a blend of both as a semi-absentee owner? Each situation comes with its own degree of responsibilities and it is essential to determine which you wish to hold before any further decisions are made.&nbsp;Expert tip: When deciding which model of ownership you want to hold, conduct an honest assessment of your own abilities—including your strengths, weaknesses and personal life priorities—to determine which model and level of involvement is the right fit for you.&nbsp;3. Degree of autonomyWhen searching for a franchise brand to invest in, it’s also important to consider the degree of autonomy you wish to hold in the business. Do you want to be part of a brand where every single aspect is laid out for you, or do you want to be able to figure some things out for yourself? If so, which aspects are most important to tailor to your preferences? In regard to design, do you want a unified look or the freedom to design your location as you see fit?&nbsp;These questions (and many, many more) are all important ones to ask yourself and your potential franchisor. However, it’s important to realize that when you are becoming a part of a franchise, you are choosing to become a part of someone else’s brand—which usually means uniformity. In most cases, <a href="https://www.entrepreneur.com/answer/222350?utm_source=1851franchise.com&utm_medium=article&utm_campaign=consider-these-three-factors-before-beginning-the-franchise-discovery-process-2711964" target="_blank" rel="nofollow">franchisors will control how franchisees conduct business</a>, ultimately restricting your autonomy in business decisions. Franchisees should be comfortable working with corporate brand representatives and implementing franchisor-established best practices.&nbsp;Expert tip: Do your due diligence and make sure you ask and understand which aspects of the business you will have control over and which you won’t. Understanding where you have the freedom to make your own decisions can eliminate any future conflicts between both parties.

Consider These Three Factors Before Beginning the Franchise Discovery Process

1851 Franchise

Among all of the things to be taken into consideration, 1851 highlighted three key factors prospective franchisees should consider before beginning the discovery process. 

consider-these-three-factors-before-beginning-the-franchise-discovery-process

Dillas Quesadillas

Design with photo of Michael Mabry and Dillas Primo Quesadillas logo

Franchise Times: New Franchise Exec Says Dillas Is Bringing ‘Excitement’ Back to QSR Category

michael-mabry-franchise-growth

Lawn Squad

Greener, Faster, Smarter: Why Entrepreneurs Are Choosing Lawn Squad 

Greener, Faster, Smarter: Why Entrepreneurs Are Choosing Lawn Squad as a Treatment-Only Lawn Care Franchise

lawn-squad-franchise-opportunity

Jollibee

How Jollibee’s Veteran Leadership Team Is Rewriting the Playbook for U.S. Expansion

franchise-leadership-growth

Woodhouse Spas

Photo of guest checking in at Woodhouse Spas reception desk

franchise-questions-answered

Mellow Mushroom

How Mellow Mushroom’s Model Made it the Perfect Addition to Brad Harper’s Restaurant Portfolio

How Mellow Mushroom’s Flexible Model Made it the Perfect Addition to Brad Harper’s Growing Restaurant Portfolio

mellow-mushroom-brad-harper-restaurant-growth

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

How AI Is Transforming Restaurant Operations and Franchises

ai-impact-restaurants-franchises-human-centric-technology

Round Table Pizza Franchisees Take FAT Brands to Court Over Marketing Fund Mismanagement

round-table-pizza-franchisees-take-fat-brands-to-court-over-marketing-fund-mismanagement

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Callaway Sells Majority Stake in Topgolf to Private Equity for $770 Million

callaway-sells-majority-stake-in-topgolf-to-private-equity-for-770-million

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

1851 Franchisee Spotlight graphic with photo of Eli Cohen, Layne's Chicken Fingers logo

C5 Restaurants Grows its Texas Footprint with 40 Layne’s Chicken Fingers Locations Planned Statewide

eli-cohen-laynes-chicken-fingers-texas

Consider These Three Factors Before Beginning the Franchise Discovery Process

MORE STORIES LIKE THIS