1851

Buying a franchise is one of the most important investments you can make. And with so many different concepts and categories out there, it can take time to narrow down your options.&nbsp;The right research and preparation can make the choice seem much easier. By gaining a better understanding of the process, prospective business owners can better narrow down their choices and eventually find the perfect fit.&nbsp;With that said, here are several places to start your journey into franchising.<h4>Decide How Much You Want to Invest and What You Want to Earn</h4>According to&nbsp;<a href="https://www.linkedin.com/in/danrowe3/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-narrow-down-your-options-and-choose-the-right-franchise-brand-for-you-2721861" target="_blank" rel="nofollow">Dan Rowe</a>, CEO of&nbsp;<a href="https://fransmart.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-narrow-down-your-options-and-choose-the-right-franchise-brand-for-you-2721861" target="_blank" rel="nofollow">Fransmart</a>, one of the first questions you need to ask is how much capital you are willing to lose.&nbsp;“It's really important for someone to understand what their risk is because, if they’ve been fortunate enough to save up that much money in the first place, they have to protect it,” he said.&nbsp;&nbsp;Franchising costs vary greatly depending on the industry. Although a buyer’s dream may be to open their own restaurant or retail store, their financial situation may not be best suited for that category. While some initial investment fees are less than $10,000, others can be upward of $1 million, depending on the costs necessary to start the business.&nbsp;The second part of the equation is how much you want to make from buying a franchise. Your initial thought may simply be “as much as I possibly can,” but Rowe noted that this is not the best way to think about it.Potential franchisees should consider what they want out of the experience. Are you trying to replace your income? Build a family legacy? Make a certain amount every year? Different franchises can be the solution to each of these questions, so choose wisely.&nbsp;<h4>Think About What You’re Trying to Build – and Why</h4>Rowe emphasized that “why?” is a crucial question that many franchisees make the mistake of not answering before they buy.&nbsp;“People wind up buying a 10 or 20-store territory when they really only need the net effect of three or four units,” he said. “If you zap all your money, you could wind up getting into fault with the franchisor because you're not building out all those other units, which creates legal problems or tension.”He advises franchisees to start small on something that is appropriate for them and what they are trying to build.&nbsp;<h4>Choose Something You’re Passionate About&nbsp;</h4>Investing in a franchise that you’re passionate about or even have some experience in can make all the difference.&nbsp;Starting a business is hard work, so an opportunity that is more hands-on and in line with your interests may be best for first-time franchisees.&nbsp;“You should be excited every day to bring your brand to customers,” said Rowe.&nbsp;<h4>Consider a Product’s Demand</h4>Something else to think about is whether what a brand is selling is in demand — and going to stay in demand. Consider going into a business that has withstood the test of time and is less of a passing fad.&nbsp;“If you buy into a concept that’s already a dying breed, you're never going to get that return on investment,” said Rowe. “Your segment has to have a long runway, and your brand itself has to be at the front end of its cycle so that you can still build your locations and sell.”&nbsp;<h4>Talk to the Right People</h4>One of the best ways to find out if a franchise brand is right for you is by talking to existing franchisees. Rowe advises not only speaking to the ones that are doing well but also to the ones that are struggling. Though it is important to talk to the corporate team, they can’t always give you the same information as franchisees due to disclosure laws.&nbsp;When talking to a successful franchisee, you want to ask questions to make sure that you can replicate what they are doing to have that kind of success. Talking to the people that have been unsuccessful can allow you to find out what happened and if it was an issue with them or with the concept.&nbsp;Two questions Rowe says prospects should always are are:&nbsp;<ul><li>Knowing what you know now, would you do it again?</li><li>Are you building more stores?</li></ul>“Those two are probably the best to ask because you can have a franchisee who's down on their franchisor for a number of reasons, but if they come back and say they would do it again, then at least you know that whatever they are struggling with has been worth it,” he said.&nbsp;

How to Narrow Down Your Options and Choose the Right Franchise Brand for You

1851 Franchise

Choosing a franchise brand can be overwhelming. Here are several tips for narrowing down your choices.

how-to-narrow-down-your-options-and-choose-the-right-franchise-brand-for-you

Fresh Coat

Fresh Coat Painters’ National Accounts Program Unlocks Commercial Contracts for Franchisees

Fresh Coat Painters’ National Accounts Program Unlocks Lucrative Commercial Contracts for Franchisees

fresh-coat-painters-national-accounts-program-unlocks-lucrative-commercial-contracts-for-franchisees

United Water Restoration Group

How United Water Restoration Group Wins With Consumers

how-united-water-restoration-group-wins-with-consumers

Fresh Coat Painters: The Next Great Franchise Opportunity

fresh-coat-painters-the-next-great-franchise-opportunity

TruBlue Home Service Ally

10 Frequently Asked Questions About the TruBlue Home Service Ally Franchise Opportunity

10 Frequently Asked Questions About the TruBlue Home Service Ally Franchise Opportunity: What You Need To Know

10-frequently-asked-questions-about-the-trublue-home-service-ally-franchise-opportunity-what-you-need-to-know

Comfort Keepers

Executive Q&A: Natalie Black, CEO of Comfort Keepers®

executive-qa-natalie-black-ceo-of-comfort-keepers

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 Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

McDonald’s Commits $100 Million to Aid Franchisees and Rebuild Trust After E. Coli Outbreak

mcdonalds-commits-100-million-to-aid-franchisees-and-rebuild-trust-after-e-coli-outbreak

Blackstone Acquires Majority Stake in Jersey Mike's, Signaling Ambitious Growth Plans - 1851

Blackstone Acquires Majority Stake in Jersey Mike's, Signaling Ambitious Growth Plans

blackstone-acquires-majority-stake-in-jersey-mikes-signaling-ambitious-growth-plans

What's To Come for The Economy and Franchising in 2025

whats-to-come-for-the-economy-and-franchising-in-2025

Qdoba Expands, Signing 22 New Franchise Agreements

qdoba-signs-22-new-franchise-agreements

Globalization's Effect on Franchise Expansion

globalizations-effect-on-franchise-expansion

Big Frog - Zoltan Varga - Yonie Young - 1851 Franchise

From Corporate Layoff to Community-Centered Business Owners with Big Frog Custom T-Shirts in Stockton, California

big-frog-zoltan-varga

Entrepreneur Partners with Hospice Caregiver to Open Griswold in South Bend and Elkhart, Indiana

entrepreneur-partners-with-hospice-caregiver-to-open-griswold-in-south-bend-and-elkhart-indiana

Warehouse & Distribution Leader Transitions to Franchise Ownership with HomeTeam Inspection Service

Warehouse and Distribution Leader Transitions to Franchise Ownership with HomeTeam Inspection Service

warehouse-and-distribution-leader-transitions-to-franchise-ownership-with-hometeam-inspection-service

Navy Veteran Transitions From Corporate World To Franchising With Shuckin' Shack

How to Narrow Down Your Options and Choose the Right Franchise Brand for You

MORE STORIES LIKE THIS