The Road from Fanatic to Franchisee
It is not surprising that most of our franchisees have started off as raving fans of the Another Broken Egg Cafe ® brand. Passion about a concept, or type of business, may be a great starting point for your franchise career, but should not be the only factor in your decision making.
There are many things to consider when investing in a franchise. The first is whether franchising is right for you. Generally, successful franchises run on operational consistency and execution. Can you “play by the rules”? Or, are you too entrepreneurial?
Franchising is fairly unique in its ability to create true wealth. However, to be successful, you have to pass an honest self-assessment. What passions, talents and life experiences will help you in your franchise journey? Answers to these questions will help qualify the emotional side of your investment. There are also many fact-based questions you need to ask yourself. How much do you have to invest? What is your risk tolerance? Are you okay with wearing many hats in your business? Do you have the financial resources to be able to pay your bills while your business is scaling? Are you good at building and managing teams? How will this decision affect your personal life? A franchise business is, first and foremost, a business. Entrepreneur magazine has a simple franchise aptitude quiz that will help you answer some of these questions. https://www.entrepreneur.com/article/44202
Most importantly, be prepared to dig deep. A life changing event, like purchasing a franchise, should not be reactive. Plan on dedicating four to six months to research on the franchise, its current ownership group and its leadership. Start the process by requesting the franchise information package along with the franchise disclosure document. The disclosure document will break down the investment itself and general terms of the agreement and should include a list of current franchisees. Second, invest the time and money to visit the franchise company headquarters, meet the leadership staff and understand the internal workings of the operation.
Do not be afraid to ask tough questions; this generally is a large investment, so make the most of your visit. Third, call as many of the franchisees as you can. Most owners will give you their true, honest opinion of their ownership experience. Last, use the internet early and often, there are many informative websites out there that will greatly assist in your due diligence. One helpful website is The International Franchise Association, www.franchise.org The Federal Trade Commission, the government body that oversees franchising, also has a helpful section on their website dedicated to first time franchise buyers