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Facts to Consider in Preparation for Taking a Retail Franchise Deal
Entrepreneurship is a growing form of establishing your name in the market. The idea of being able to be your own boss is as enticing as it sounds but it does come with a few speed bumps along the way. Because of the growing supply of individuals wanting to make a name for themselves, retail franchises have become a helpful tool in helping big-name industries scout out potential business partners and entrepreneurs looking for a stable environment to grow in. If you’re on the lookout to embark on a high risk, high reward business venture, here are a few facts to consider before you sign your Franchise Disclosure Document to be a retailer.
You are your own boss, only with a bigger boss above you
Franchising is the opportunity to be your own boss, of course, you technically are and not at the same time. The two main forms of franchising are ‘product and name franchising’ while the other is ‘business format franchising’. The first lets the franchisor give you the right to use a name or established trademark. The other includes a range of services which can include business processes, inventory, and the like. Most franchises offer a hybrid model that lets you have the right tools to sell their brand name more effectively.
There is a wide selection of opportunities available ranging from digital accessories, cleaning services, and the like. If you’re having trouble finding your preference, hosting sites like startyournewfranchise.com hold a catalogue of franchises to choose from to compare and gauge with your business goals and budget constraints.
Taking the deal
Once you’ve shown interest in investing in the franchise, you’ll most likely be handed a Franchise Disclosure Document which lays down the ground rules for you to take note of including basic rules, fees, responsibilities, and other financial and legal information.
Another important perk that comes with starting in a franchise instead of being a sole proprietor is the name attachment. No-name businesses often take close to a little over a year before they can muscle their way out of the woods, with no way to know which the right way to go is.
Location, location, location
Similar to the real estate adage, finding the right place to be is essential in starting a business – in this case, extending the franchise’s reach. The most important perk you can receive from a franchise deal is that most of the legwork will be done for you. One of the biggest dangers that solo entrepreneurs face is the threat of competition and the traffic of the local market. Selling the same products as a bigger brand name is sure to be a steep uphill climb. But being a part of a bigger company allows you to benefit from company-wide perks such as local and national marketing promotions that you wouldn’t have been able to afford if you were starting a business on your own.