Let's imagine a situation: you are going to start your business based on a franchise, but you cannot choose a partner who will grant you the right to use the brand of their company. How to choose a reliable franchise company? To do this, you need to evaluate the franchise proposal by several criteria. We share with you the main points to check before choosing the right franchise.
Evaluate the idea of the project
First of all, consider the business ideas offered by franchisers and choose the one that you like the most. Fortunately, nowadays, online franchises are present in virtually all areas of Internet business. Give preference to those projects, in the essence of which you understand, since it will be much easier to work in a known and understandable area for you.
Communicate with the franchisee
It is important to communicate with the franchisor before the conclusion of the agreement on dealer cooperation. Try to learn as much as possible about the work of the company, the successes of the main project and the plans for the future. Also look for information about franchise managers and analyze the information about their business experience and the franchise network development model.
Talk to other franchisees
It is better to find three or four dealers who have already acquired the rights to the franchise you liked. Be sure to learn from them the data on their costs in opening a dealer business, daily work responsibilities and profitability of the project. Give preference to those franchises that allow dealers to recoup all the costs of starting a franchise enterprise within 4-12 months.
Check the franchise for legal reliability
In order to do this, you will need first to study reviews on the franchise, then look for information on the Internet on the people who own the rights to it. If the Internet does not find any evidence of major fraud or dubious projects involving the partners, then you can consider them as more or less reliable franchisors.
Assess the risks
In other words, you need to carefully read the contract for the use of franchise rights, which must be created with each dealer. Examine all penalties that can be relied upon if the terms of the agreement are not met by the dealer or franchisor. At this point, we advise you to resort to the help of professional lawyers - let experts also analyze the contract.
Work out a detailed model of the dealership business plan
First, evaluate the timeframes that you will need to bring your dealer project to self-sufficiency and profitability. Second, calculate the costs of promoting your business and find out the capabilities of its target audience. Finally, sketch a plan of your work duties, which you will have to carry out for the development of your franchise enterprise.
we draw your attention to the fact that the Instalex franchise has
already managed to get the status of a reliable and stable business
partner for its dealers. You can find detailed
information on the prospects of cooperation with the service in a special section of the site of the platform. Favorable conditions for acquiring rights to franchise business are also offered by the online store ECIR. Cooperation
with it will give you the opportunity to open a profitable and
high-quality project to promote accounts on social networks. More about the benefits for the franchisee you will read in the "Franchise" section of the ECIR website.