There is a lot of research you have to conduct when looking to buy a franchise. You should read as many documents as possible regarding the franchisors you want to work with, learning as much as you can. This information can make you a better-informed entrepreneur. However, it’s important to remember that a franchisor has a vested interest in selling the franchise to you, and is unable to tell you all you need to know about operations. Sometimes, it’s better to get information from the people who are actually running the business: the franchise owners themselves. It’s therefore crucial to talk to franchisees while looking at different franchisors. The Moran Family of Brands has a large network of owners that support each other through mentorship and other means.
Understanding the business
There are good reasons to speak with other franchisees, especially those you’re interested in. The main reason is that they are running operations based on the expected business model every single day of the week. Since they are there constantly, you can get an in-depth look at the inner workings of running their franchise. In addition, if you can ask the right questions, you’ll find out what to expect from working with this particular franchise day in and day out. That can give you a better idea of whether you’ll enjoy working for this franchise for a long time. Given that buying and running this is such a major investment in your life, this is a very important thing to consider.
In addition, from talking to the franchisees, you can get a sense of the logistics that help run the business. For example, you’ll be able to find out if the current business model works not only in one region, but in all parts of the country. This is very useful to know, since the structures may have unique impacts in different states. Moran runs a proven franchise system that is found all around the country under different brand names such as Alta Mere Automotive Outfitters, Milex Complete Auto Care and Mr. Transmission. More importantly, you get an understanding of the true financial picture of a given franchise, such as how much you should expect to invest over the course of operating it. You also get an idea of how much you expect to earn, which can help you plan ahead.
Question the answers
There are a variety of questions you could ask at any given moment. The first thing you should ask for is a bit of background on the franchise owners you’re talking to. Ask these people about their prior work experience, as well as what caused them to start their own business. Find out when they opened, as well as why they picked the franchisor in the first place.
Once you get the history out of the way, you’ll want to know as much as you can about starting the process. Make some discussion about initial training and support as the franchisees started up the business. You can glean a lot of information about how much experience and support you need to get through the initial process. You should learn about the marketing programs used to get customers, as well as what advertising funds are used, which can give you a sense of what helps bring in foot traffic.
There are also some things you should ask about regarding the money situation. For example, you should probably find out how much purchasing power the franchisees have to buy specific goods, and what leverage they have over what is bought. In relation to that, you should ask them how they feel about the franchisor, since they should give you their honest opinion about the process. Finally, learn about their earnings expectations, as well as the income over time, including when they broke even. All this information can help you make a good, lasting decision on where you buy a franchise.
To learn more about owning a franchise, visit the Moran Family of Brands website!