It can be quite exciting to invest in a franchise. If it’s your first franchise, there’s a lot you may not know or understand about the whole undertaking. There are potential upsides, as well as potential downsides, but if you manage the franchise well, you will want to replicate your success by opening other franchises in different locations. In this article, we will discuss what to expect from your first franchise.
Before investing in a franchise, you should conduct a lot of research into the franchise’s value proposition, business model, values and competitive advantages. You need to understand how the business is valued so that you do not overpay to get into the business. And you need to meet with the leadership team to see what kind of people they are. Ultimately, no matter how great a business seems, you want to deal with honest people whom you can trust. No contract can protect you from dishonest people.
When you have made the initial investment, you will go through what is known as “onboarding”. This is a process in which the franchisor guides you as you pick a location, and design it. It’s also a time in which you are trained on how to open and close the franchise. Indeed, the leadership will often have someone with you when you open your doors for the first time. After that, you will be expected to manage the business on your own.
Franchisors will often give very detailed training so that you understand precisely what is expected of you and to maximize your chances of success in running the franchise. As much as your money is at stake, they don’t want you to ruin their brand. You both have your heads on the block. You have to be willing to put in the work to understand the franchise.
When you finally open your doors, you’ll feel pretty good about yourself. There’s little in the world as fulfilling as opening a business for the very first time. You will have to pick a team to manage the business and guide that team as you chase your goals. You will need to find the right person for the roles that need to be filled to successfully run your franchise. You need to make decisions such as who will open the franchise’s doors every morning. Ultimately, you are guided by the franchisor’s business model, process, standards and systems in how you run the business, but you still retain a great deal of freedom in terms of your decisions. So, for instance, if you invest in one of the medspa franchises, you will need to adhere to certain principles in order to maintain the integrity of the brand, while also making independent decisions to maximize your odds of success. Decide wisely!
No plan survives first contact with reality. Something will always go wrong or at least not go according to plan. You need to be prepared for every foreseeable eventuality and prepared to react calmly to those unforeseeable events that will arise. You should also be willing to seek help when you need it. You can always speak to your franchisor and they can help you through the process and become a better franchisee. Remember, they want you to succeed as much as you do!