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Researching a Franchise

How Do You Know That You’ve Found The Right Franchise?

Here’s what to look for first when shopping for franchises.

Kyle Zagrodzky

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Shopping for the right fit in a franchise has become a lot more difficult in the last decade because there are so many options. Today, franchises have broken out of the old moulds that used to just include gyms, fast food joints and retail stores.

Tons of companies have hopped on the franchising wagon, which opens the market to a million possibilities, but can clog and complicate the shopping and decision process.

If you’re on the hunt for a franchise that fits you, these tips will take some of the stress out of the process.

What catches your eye — and keeps it?

Sometimes potential franchisees hyper-focus on the rands and cents of owning a franchise and ignore a crucial element in their potential success — their actual interest in the business.

The rands and cents are obviously important, but your interest in and passion for the business is equally important. If you’re lactose intolerant, don’t open an ice cream shop, even if the numbers look good.

If you haven’t been to the gym in three years, don’t open a gym. If you’re obsessed with the perfect burger, though, and find a franchise that has phenomenal fries and a shake to boot, then you’re on the right track.

Related: 7 Essential And Expert Advice On Excelling As A Franchisee

Does this business make sense in your market?

Continuing on the idea of the perfect burger, let’s say you find a few franchises that line up with what you want. It’s not time to pull the trigger yet as there are still other factors to consider. Are there similar restaurants in your area already? Are you the only meat lover in a town composed exclusively of vegetarians?

Look at your market, and ask yourself if there is room for this particular franchise. What’s the competition like, and can you anticipate a high demand?

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What are the details that will make or break your experience?

Opening any new business is an involved process, and that doesn’t change when you open a franchise. For example, you still have to work with real estate issues such as location, zoning and rent negotiation.

As you examine various franchises, pay attention to what level of support each one offers, and weigh that against your personal experience and comfort level.

If you have no real estate experience and some of your prospective franchise matches don’t offer help with securing a unit space, then that might be a factor to consider.

Go with an established brand, or bet on the new kid?

Sometimes people shopping for franchises assume opening a new unit within a major brand is a guarantee of success. Although those brands have a lot of power and recognition, joining forces with them isn’t an ironclad way to earn.

Every business, whether it’s a major or a total newcomer, involves risk. There is no bulletproof way to be an entrepreneur, so don’t eliminate a smaller or newer franchise just because going with the big guy has the illusion of being a safer bet.

It’s more important to choose a franchise you’re passionate about that will deliver the right level of support for your comfort level than it is to select based on size alone.

Related: The Perils Of The Franchise Agreement

What did you feel when you met face to face?

Once you’ve done all your homework — watched the videos, read the brochures, studied the franchisor disclosure document — it’s time to do some reconnaissance on your finalists in person. Visit or contact as many individual franchise locations as you can and see how the customer experience feels.

Talk to current franchisees on the phone and in person to get a sense of whether they’re happy with the brand.

Finally, visit the franchise executive team. Get a good look at how things really run in the hub. Make sure you are at home with the people who will make the big choices for the brand as a whole.

Kyle Zagrodzky is president of OsteoStrong, the health and wellness system that boosts bone and muscle strength in less than 10 minutes a week using scientifically proven osteogenic loading concepts. OsteoStrong introduced a new era in modern fitness and aging prevention two years ago and has since helped thousands of clients between ages 8 and 92 improve strength, balance, endurance and bone density. In 2014, the brand signed commitments with nine regional developers to launch 500 new locations across America.

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How To Become A Hi-Q Franchisee

Are you looking at investing in a tyre replacement and service industry? Look no further than the Hi-Q franchise.

HI-Q

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Established in 1999, Hi-Q is a successful and diverse multi-product, multi-brand leader in the tyre replacement and service industry with a network of over 130 franchisees nationwide.

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With the support of international tyre giant Goodyear, Hi-Q has established a solid reputation of ‘the one you can trust’, and the Hi-Q approach and philosophy is embedded in this.  We have the trust of our customers, our network and our suppliers – that’s why you can trust us to take you and your business to the next level.

When you’re working with people’s safety, trust forms the most significant part of the equation

Hi-Q introduced the original and innovative TyreSurance initiative – the only aftermarket tyre damage guarantee product that backs the consumer no matter the brand of tyre.

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Related: We Want To Invite You To Join Us On The Hi-Q Journey And Become A Franchisee

Each Hi-Q Franchise offers a broad range of brands within the different product and service categories that customers know they can trust, and at prices they can afford. Product and services include tyres, exhausts, shocks, batteries or brakes, wheel alignment or balancing, and a 10-point safety check.

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We have identified areas of opportunity to extend our Franchise footprint growth.

If you are looking to join a new franchise and you share in our values and vision, we would like to hear from you.

For further information on how to become a franchisee, call us on +27 11 394 3150

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Researching a Franchise

Col’Cacchio – Benefits Of The Franchise Model

Six key benefits of the restaurant franchise model – and what to look out for when considering a franchise.

Russell Otty

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For investors looking to the restaurant industry and considering a franchise knowing it has a proven track record and is therefore possibly a lower risk, there are a few key things to be aware of about the benefits of the franchise model, which if investigated, can also point to a franchise that is not for you.

Russell Otty, Chief Operating Officer of the Col’Cacchio Group, shares some of these key benefits and indicators of whether a franchise is for you:

1. Making the cut as a franchisee gives you the confidence that you are making the right decision

You may think psychometric testing, three days in a restaurant following a franchisee around, and a panel interview with the senior management of the franchisor, is a bit over the top, but the franchisor that puts you through your paces and assesses your ability and commitment to running the business, is doing you a huge favour and may even help you see this is not for you. It goes both ways, and after an intense courtship, you should know if you want to try a long-term relationship.

Related: Col’ Cacchio: A Passion For Pizza

2. Assistance with location selection and negotiation of the terms of your lease

One thing you can do to limit your risk is to not open a restaurant in the first place if your rent is not going to be reasonable or you simply won’t get customers through the door. The franchisor will vet and approve the site – they will have extensive insight into what has worked or not worked location-wise for their brand, and can assist you to weigh up the area and it’s potential to attract customers.

The commercial terms of a lease is very important – you can’t be too ambitious about turnover targets, and having the backing of a franchisor can be beneficial if a landlord becomes unreasonable.

3. Staff training and development tools on hand

Consistency is important with restaurant franchises, as a customer visiting a brand anywhere in the country, goes there knowing exactly what they are going to get. This is best achieved with solid training, perhaps access to resources such as training videos, and regular visits from franchise managers.

You should check with your franchisor what level of training and franchise support you will have on an ongoing basis. Ask about the ratio of field trainers and operations managers to the number of franchisees in the group. You want the franchisor in your restaurant in some shape or form, two or three times a month, whether it be the training manager, the regional franchise manager or the national operations manager.

4. Access to supplier networks to manage your input costs

Negotiating basket pricing with distributors regionally and nationally, the franchisor will leverage their buying power on your behalf. They should assist to manage your suppliers and make sure deliveries happen on time, and ensure that product quality remains consistent. They can also negotiate to ensure your input costs do not increase before the next menu launch – so you can ensure your margins remain intact.

5. Brand loyalty and locality marketing

When you buy a restaurant franchise, you gain a group of customers who know who you are, the food you serve and the way you make them feel. The money you will pay towards marketing each month gives you insight into the broader restaurant market, the experience of what is working across a number of sites, and how best to keep the attention of new and existing customers.

Some franchisors offer locality marketing assistance – your site and area has specific needs that other outlets may not have, or there may be events in the area that can be leveraged to run special offers. Ask if the franchisor offers this as a service, as it can assist you greatly to have an advantage over other restaurants in your area.

Related: Beginners Guide To Digital Marketing In South Africa

6. Business development insights

The franchisor has access to insights gained across the group, and the systems that they have in place to track costs and increase profit margins, can be of huge assistance. If you are looking for business support, a franchise manager can be the one sitting with you telling you that you spent R2 000 too much on cleaning this month or saying you need to wait till next month to make that purchase. The level of business support you will have access to, is an important factor to consider, depending on the level of support you may require.

Recipe for success

Nine times out of ten, a restaurant franchise that fails, fails because the franchisee loses interest or lacks the commitment to make it work. Selecting the best franchise for you as the investor, or as a restaurant entrepreneur, is the most important first step you can take towards success, so do the homework.

Don’t assume that because you are buying into a successful brand that it will be a success – business is not an exact science – you need to do your own due diligence and take responsibility for your business, because it is after all your own investment.

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We Want To Invite You To Join Us On The Hi-Q Journey And Become A Franchisee

As the leader in the tyre replacement and service industry, we are invested in providing our network with the tools needed to thrive and grow in an ever-challenging market.

HI-Q

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This is an invitation to all innovative entrepreneurs who are seeking new and exciting opportunities – here’s your chance to become part of a winning team.

As the leader in the tyre replacement and service industry, we are invested in providing our network with the tools needed to thrive and grow in an ever-challenging market.

The Hi-Q Way

  • Hi-Q’s been voted the 1 tyre retailer by South African consumers in the Ask Africa Icon Brands Survey from 2010 – 2017.
  • Over the years Hi-Q has established itself as ‘the one you can trust’, with customers, the network and suppliers.
  • Hi-Q prides itself on first-class service, a multi-product/multi-brand offering as well as ground-breaking product innovations such as TyreSurance on all tyre brands.
  • Hi-Q has an extensive network of over 130 franchisees
  • Hi-Q has the support of the Goodyear value proposition.

If you are looking to join a new franchise and you share Hi-Q’s values and vision, please get in touch.

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