It’s important to remember franchising is not just about buying into an established business; rather it also includes a partnership that should have aligned outcomes and mutual investment for the entrepreneur and franchisor.
To forge a business relationship based on trust and destined for success, the franchisee and franchisor should evaluate their potential partner against a specific list of attributes, many of which are non-financial.
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To help in the process, here are common mistakes that entrepreneurs make and tips to help avoid making those errors.
Shortcutting the research. Before you dive headfirst into a franchise, you must be confident in the relationship.
The prospect of making money can encourage new franchise owners to shortcut the research process, ultimately getting them in over their heads.
Tip: Put your back into the background check. Dig into the culture and history of the business. Do market research on the longevity potential of the franchise’s service or product A business based on a short-lived trend isn’t sustainable for the long haul, so knowing where you see yourself in 10 to 15 years and aligning that with your franchise goals is key to long-term gains.
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Not checking for alignment of core values. If a franchisee is ‘in it for the money’ without having determined if the company’s core values are aligned with his then the likelihood of having issues down the road increases dramatically.
Related: How Risky Is That Franchise?
Tip: Seek to understand the core values of the franchisor. Every company worth establishing a partnership with has rock-solid values. Get a feel for the franchisor by speaking with employees, other franchisees and partners to understand how they act when they are not trying to sell you a franchise. How will they act after you have paid your franchise fee and when no one is watching?
This article was originally posted here on Entrepreneur.com.