If you’ve recently made the exciting decision to invest in a franchise, you might be wondering where to start. You’ve probably already considered the benefits—like being your own boss, and taking over a proven business model and customer base—and are possibly turning to Google with a query like “franchise opportunities near me” in order to shop around a bit.
How do you find the right franchise for your goals and lifestyle, though? And how do you actually become a franchisee? In this blog, we’ll help you answer these questions and provide you with some resources for finding that perfect opportunity.
How Do People Afford to Open a Franchise?
There’s no way around it—one of the first things that should be on your “I’m ready to open a franchise” checklist is exploring your funding options. The last thing you would want is to make a large financial decision without fully considering the advantages and disadvantages of such an investment. Fortunately, there are several viable options, including:
- Small Business Administration (SBA) loans: The SBA partners with a large number of banks and is familiar with the ins and outs of funding and operating a successful franchise.
- Outside partners or investors: Like any other business endeavor, if you have reliable professional connections who might be willing to invest, it can mitigate a decent amount of potential risk.
- Franchisor financing: Sometimes, franchise brands will partner with specific lenders in order to offer favorable rates and easy approvals—provided you’ve developed a sensible franchise business plan.
- Commercial bank or credit union loans: If you have a detailed business plan and a good credit rating, you can apply for a commercial loan backed by your bank or credit union of choice.
- Personal assets: While it can be risky, some prospective franchisees consider tapping into their personal savings accounts, or even withdrawing funds from a retirement account.
Do All Franchisees Make Money?
Unfortunately, investing in a franchise is not guaranteed to be lucrative. That being said, there’s a reason franchising is so popular, and it’s that you certainly can make good money—and live a great life—as a franchisee. To increase your chances of making a comfortable profit, you can start by:
- Exploring a wide range of franchising options, in order to find a business idea that motivates you to make it your own and thrive.
- Working to develop a franchise business plan that covers all the basics, including funding and other requirements.
Next, let’s look at each of these in a little more detail.
What Are the Best Franchises to Own?
When determining the best franchise to invest in, you should consider not only the potential ROI of your investment but also the work-life balance or general lifestyle that appeals to you. After all, being your own boss should have its perks! To put it simply, we advise against investing in a franchise solely for the ROI. Instead, consider using our list of the 50 Most Popular Franchises to Buy & Own in 2022 as a starting point.
It’s important to consider what industry or industries you are interested in, so you can ensure a good fit. Franchising opportunities actually go well beyond what most people think of—fast food chains, for example. Other popular franchise categories include:
How Do I Develop a Franchise Business Plan?
A franchise business plan provides an overall framework for successfully investing in—and managing—a franchise. Next, we’ll explore the basic steps for getting started.
- Step 1: Make sure you’re really interested in franchising. There are compelling pros and cons to franchising, so it’s important to consider not only the financial implications, but the lifestyle as well. For some people, the idea of being their own boss is exciting; for others, it might cause great anxiety.
- Step 2: Consider your options. As we described earlier in this piece, there is a wide variety of franchising options out there. You’ll want to consider the advantages and disadvantages of each. Here, it might help to consult a trusted outside perspective to help you consider each option fully.
- Step 3: Make sure you meet franchising requirements. There are financial and business requirements to consider. On the financial side, you’ll need to account for up-front costs, which may include building and equipment costs, as well as staffing and inventory. On the business side, you’ll need to assemble a plan that includes components such as:
- Executive summary
- Business description
- Management summary
- Sales and marketing plans
- Funding needs and projections
- Step 4: Make plans to help ensure ongoing success. If you’re wondering, “How do I qualify for a franchise?” the good news is that it’s relatively easy. Rather than meeting some set-in-stone qualification criteria, you’ll just need to have sufficient funding, some business acumen, motivation, and a few key qualities, like being:
- Flexible, ready to adapt to whatever comes your way.
- Resourceful, able to marshall the right resources and personnel to get things done.
- Excellent communicators, equally adept at dealing with colleagues and customers.
- Great managers, who possess emotional intelligence, resilience, and the ability to inspire.
Opportunities Abound at FranchiseOpportunities.com
A great place to start your journey toward a rewarding career as a successful franchisee is FranchiseOpportunities.com. There, you can:
- Browse available franchises, including by Industry, Investment Level, Location, and more. Or, browse our Top 50 Franchises list.
- Visit our Resources page to learn more about franchising fees and financing options, how to calculate your net worth, best practices for running a successful franchise, and much more.