Franchise business is one of the popular business at the moment. Beside, easy to run, a brand or name that has been widely known by public is one of the factor why most of people choose this business. So, they no need to start the business from the beginning or zero. However, remain cautious and selective in choosing a franchise is a key requirement before deciding to buy a franchise.
Below are the important points that must be considered in choosing a franchise :
Have a desire, Must have a desire or the likes with the business you want to choose. So, if the business condition were up or down you are still keen to do so.
Do riset, Found out the information as much as possible about the franchisor (the parties who sell the franchise)and comparing with other similar franchisor. Buy the franchise from the obscure identity franchisor. And if you do not have the business experience or do not like high risk select the long run franchise at least five years run, has many branches, good management and large capital.
Check the franchise copyright, Check carefully about the copyright of the franchise to avoid other parties claim that copyright and this would disturb the smoothness of your business.
The flexible payment, Seek the franchise who can give a flexible payment (means payment can be done in stages). Do not buy a franchise that request the entire payment in advance.
The capital reserves, As a new business going, usually the capital turnover has not run smoothly. So, it will be better provide a reserve fund at least for three month ahead rather than you must close the business because the lack of the capital. Example : if you spend 20 million for the franchise capital, you should prepare a reserve fund at least 60 million.
Creative and discipline, Despite all the science of franchise been transferred, you still must have a creativity to finding customers, discipline with financial reporting and follow or applying the rules that have been defined. Do not to be confident, buying a good franchise is no guarantee your business will always be in success if not accompanied by two things, creative and discipline.
Favorite, Choose the franchise who favorite among the people (many people loves that product, ex: food).
Manage the business yourself, To be more controlled and to avoid fraud in the financial, manage the franchise you buy by your own and do not be handed over to someone else.
And the important thing, Adjust the capital and your financial capability.