The dream of owning your own business is both exciting and daunting. You want the freedom to be your own boss and the satisfaction of building something meaningful, but you also recognize the challenges of starting from scratch. That’s where franchising comes in. With a proven business model already created for you, franchising offers a blueprint for long-term success. The systems are in place and you’re ready to hit the ground running.
Whether you’re looking for financial independence, community engagement, or a creative outlet, finding the right franchise opportunity can pave the way for long-term success. I have owned several franchises in the past 20 years, from Bruster’s Ice Cream to Nathan’s Famous Hot Dogs, and have discovered the ease of transitioning into businesses with proven business models. Here’s a guide I created from my experience as a franchise owner to help you make an informed decision.
1. Start with your Why
The first step in choosing the right franchise is understanding why you want to own a business. Ask yourself:
- What are my personal and financial goals? Are you seeking a lifestyle change, financial independence, or the chance to be a part of your community?
- What industries align with my interests? Franchising offers opportunities in everything from food service to experiential retail, so consider what excites and motivates you.
- What do you enjoy? If you’re not passionate about the work, it’ll be harder to stay motivated through the tough days.
Check out my interview with Shops at Penn in the University City neighborhood of Philadelphia. Here I explain my why for starting Cork & Candles.
2. Reflect on Your Strengths
Owning a franchise doesn’t mean you have to know everything, but leveraging your strengths can set you up for success. Think about:
- Management and Leadership: Do you have experience leading a team or managing a business?
- Customer Engagement: Do you enjoy creating positive experiences for others?
- Adaptability: Franchises operate on proven systems, but flexibility and problem-solving are crucial for success. Are you open to learning and growing?
3. Research the Industry and Franchise Opportunities
This is where your homework comes in. A franchise is an investment, and you want to make sure it’s a smart one. Here’s what I recommend:
- Look at Industry Trends: Is this an industry that’s growing?
- Evaluate the Brand: Is the franchise well-respected? Does it have loyal customers and a strong reputation? Check for customer reviews!
- Understand the Model: What does the franchise offer in terms of training, support, and marketing? Are you confident in the systems they’ve built?
According to the International Franchise Association (IFA), the number of franchise establishments will have increased by more than 15,000 units, or 1.9%, to 821,000 units in 2024 alone.
4. Assess the Costs and Financial Requirements
Franchising requires a financial commitment, so it’s essential to understand both the initial investment and ongoing fees.
- Initial Costs: This includes franchise fees, equipment, inventory, and location setup.
- Ongoing Costs: Consider royalties, marketing contributions, and operational expenses.
- Financial Support: Does the franchisor offer financing options or partnerships with lending institutions?
When I was running my first franchise, I realized that having a clear picture of these costs upfront helped me manage my finances more effectively. If your franchisor is transparent about costs, it’s a good sign they’re committed to your success.
5. Ask About Support from Your Franchise
A key advantage of franchising is the support you receive from the franchisor. Look for:
- Training Programs: Does the franchisor prepare you and your team for success?
- Marketing Help: Will they assist you in promoting your location?
- Ongoing Guidance: Are they there to answer questions and offer advice as you grow?
6. Do Your Due Diligence
Before signing any agreements, review all legal and financial documents carefully. This includes:
- The Franchise Disclosure Document (FDD).
- Financial projections and historical performance data.
- Any agreements regarding training, support, and marketing commitments.
Consider consulting with a franchise attorney or financial advisor to ensure you fully understand the terms.
Franchising can be an incredible path to entrepreneurship if you take the time to find the right fit. It’s not just about the business model—it’s about aligning with a brand that supports your goals and values. I’ve walked this road, and I know how rewarding it can be when you make the right choice.
If you’re ready to explore franchising opportunities with Cork & Candles, I’d love to connect and share more about what makes our brand so special. Let’s build something amazing together.
Ready to explore franchising with Cork & Candles?
Contact us today to learn more about this exciting opportunity to join a creative, community-driven brand. To learn about how to fund your startup costs, check out the prequalification calculator on our website.
Contact us at franchising@corkandcandles.com.
Sources:
- International Franchise Association. 2024 Franchising Economic Outlook. 2024 Franchising Economic Report.pdf