Things to reconnoiter while Buying a Franchise
Buying a franchise is not an easy thought. Investing in the business seems the most important. Investing in franchise business is one of the most important decisions one takes; and why not? The investment should be based on sound research taking into consideration all the factors. The research should be such that it gives answers to all the questions and doubts in mind, also to the ones that arise and pop in later. Hence framing a well designed questionnaire is one of the primary requirements, although if all the points aren’t cleared through the questionnaire; it is possible that you encounter several queries and questions at the start but no matter remember no pains no gains; but taking into consideration the guilt of many lets figure out few points to be kept in mind while investigating. These points should figure out things like the SWOT Analysis which includes almost everything.
The 4 P’s
Evaluating the 4P's of Marketing as to examine whether the franchise brand has long term value.
Product/Service- one should evaluate what is sold to the final customer and what that customer feels about the same, is the product worth that we are providing unique enough to surpass the competitors.
Price: evaluation of the price fixed and brought into the market and also thinking about the competitive advantage.
Place: are the products available at locations or at places where it is demanded
Promotion: Is the product monitored effectively and well understood by consumers?
Strong Competitors
Things that bring a business on top are character; Track Record and Quality of Relationships build, Financial Strength, its Management and Disclosure of facts. Indentifying the most reputed on the above criterion forms the bases for identifying the strongest in the field. The analysis of the track record and financial analytics is helpful in knowing the credit worthiness.
The Keys to success
The factors like discipline involved in getting things done, the online presence and the factors that contribute to success rate with which they perform. Does one follow a system to choose franchise and the time with which they have been lasted with the owner depicts the quality of the leader and his leadership skills. The returns on investment; the tried and trusted way of judging the success of business also undertaken along with the same the returns are not only to be taken into consideration along with the joy & satisfaction rate. The regulation and rules as regards finance and management should cater effectively and efficiently. Thus all the above being the key to success of any franchise.
Financials
Espy the total investment and funding plans for the franchise; financial commitments like including fees and royalties, refurbishment schedules/amounts, minimum purchase quotas etc.
Determining the breakeven point for the organization should be determined so that even if the org. provides heavy discounts they are at no profit no loss situation.
Agreement
The agreement should protect both yourself and the franchisor. It should also cover all the details all the franchisor's verbal commitments. The details like termination of the agreement, renewal of the same, as well as the arbitration should also be predefined.
Buying a franchise is not an easy thought. Investing in the business seems the most important. Investing in franchise business is one of the most important decisions one takes; and why not? The investment should be based on sound research taking into consideration all the factors. The research should be such that it gives answers to all the questions and doubts in mind, also to the ones that arise and pop in later. Hence framing a well designed questionnaire is one of the primary requirements, although if all the points aren’t cleared through the questionnaire; it is possible that you encounter several queries and questions at the start but no matter remember no pains no gains; but taking into consideration the guilt of many lets figure out few points to be kept in mind while investigating. These points should figure out things like the SWOT Analysis which includes almost everything.
The 4 P’s
Evaluating the 4P's of Marketing as to examine whether the franchise brand has long term value.
Product/Service- one should evaluate what is sold to the final customer and what that customer feels about the same, is the product worth that we are providing unique enough to surpass the competitors.
Price: evaluation of the price fixed and brought into the market and also thinking about the competitive advantage.
Place: are the products available at locations or at places where it is demanded
Promotion: Is the product monitored effectively and well understood by consumers?
Strong Competitors
Things that bring a business on top are character; Track Record and Quality of Relationships build, Financial Strength, its Management and Disclosure of facts. Indentifying the most reputed on the above criterion forms the bases for identifying the strongest in the field. The analysis of the track record and financial analytics is helpful in knowing the credit worthiness.
The Keys to success
The factors like discipline involved in getting things done, the online presence and the factors that contribute to success rate with which they perform. Does one follow a system to choose franchise and the time with which they have been lasted with the owner depicts the quality of the leader and his leadership skills. The returns on investment; the tried and trusted way of judging the success of business also undertaken along with the same the returns are not only to be taken into consideration along with the joy & satisfaction rate. The regulation and rules as regards finance and management should cater effectively and efficiently. Thus all the above being the key to success of any franchise.
Financials
Espy the total investment and funding plans for the franchise; financial commitments like including fees and royalties, refurbishment schedules/amounts, minimum purchase quotas etc.
Determining the breakeven point for the organization should be determined so that even if the org. provides heavy discounts they are at no profit no loss situation.
Agreement
The agreement should protect both yourself and the franchisor. It should also cover all the details all the franchisor's verbal commitments. The details like termination of the agreement, renewal of the same, as well as the arbitration should also be predefined.