Why Buy a Franchise?
Owning your own business can allow you to build wealth independently while gaining more control over your work-life balance, schedule, and future. But starting a business from scratch can be difficult, posing many challenges. Franchises, however, allow you to start a business with the groundwork already laid out for you. Buying a franchise is a turnkey business opportunity allowing you to take advantage of a proven business model, existing client base, training, and many resources to help you start, manage and grow your business.
Choosing the Best Franchise for You
Before purchasing a franchise, it’s important to perform your due diligence. Some considerations to keep in mind when choosing the best franchise opportunities for you include:
- Budget. What is your current budget for startup, and what projections for revenue will the franchise offer? Franchises can be bought for less than $10,000 all the way up to $1 million+, with plenty of great opportunities between.
- Niche. When deciding on a niche, it’s important to research demand for various industries, past performance, and future outlook. You should also take into account your personal interests, knowledge and skill set if you plan to be directly involved in the management of the business.
- Location. Depending on the industry, location can be critical for success. Visibility, parking availability, local competition and accessibility can make or break a restaurant or retail business, for instance.
- Personal Involvement. How involved do you want to be personally with the business? If you have little experience in the industry, will the franchise provide you with training and resources to get you started?
- Franchise Success. How successful have other franchise owners been in the past? What are projections for revenue and costs both in the short-term and long-term?
Financing Your Franchise Purchase
While some individuals purchase franchises with cash, this is not always viable. The good news is that there are several options for financing your franchise purchase, including traditional financing, SBA-backed loans, retirement account transfers, and more. Read our financing guide for more information.