Owning a business can be risky. Will you be able to find customers? Can you get reliable employees? Is your community saturated with competitors for similar products? Is the business likely to be successful only short-term or will there be a long-lasting need or appeal? Franchisors and franchise brokers may make claims that seem to guarantee success, but you should be aware that any investment, including franchise ownership, comes with risk.
If you are new to business ownership, one of your best reference guides is “A Consumer’s Guide to Buying a Franchise,” available at https:///www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise. This guide offers suggestions for franchise selection. Consider each suggestion carefully to limit your risk when buying a franchise.
- Demand – Some business start like gangbusters and grow faster than dandelions in the spring. Pretty soon there’s a store every few blocks and everyone wants to own one. A few years later, they all close. The Consumer’s Buying Guide recommends you avoid fad businesses and focus on a business that has potential for longevity.
- Competition/Name Recognition– If you will be working in or managing your business, you will want to locate it in or near your community. That’s where to start. Who is your competition? Are they well-known with a strong reputation? How about the company you are considering? Will you be able to attract customers based on their name?
- Your Ability to Operate the Business – What experience do you have in this type of business? If the franchisor fails to support you, can you continue the business on your own?
- Complaints About the Franchise – Check with the Better Business Bureau in your state or in the franchisor’s home state to find out if there have been complaints. If the franchisor isn’t delivering on its promises (such as training, advertising), this is a company to avoid.
- Training and Support Services – Being properly trained in a business is one of the benefits of being a franchisee and it is the training and on-going support that differentiates a franchise from a business opportunity. How does the company you’ve selected rate? You’ll want to check with current franchisees to see how they feel about the training they’ve received.
- Franchisor’s Experience/Growth – Think about businesses that have been around many years. You tend to trust them, right? After all, they must know what they are doing to stay in business a long time. That’s an important consideration when you are choosing where to invest your money. Is the franchisor opening new locations? That may be a sign that they are financially healthy.Does the franchisor have a number of franchisees who have been with them for many years? If so, it seems likely they have found success. This is strong evidence that the franchisor will support you for the long-term.
If you have a desire to own a successful franchise business, consider NOVUS Glass, a nationally-known brand with 45 years of experience. NOVUS invented windshield repair in 1972 and remains the industry’s research & development pioneer. They provide their franchisees with a strong foundation and the support needed to grow each year. That means an advertising and marketing program to back up the immediate momentum of their brand recognition and referral network. With nearly 2,000 franchisees across 43 countries—240 franchisees in North America alone—NOVUS has remained the leader in windshield repair since 1972 for a reason.
For more information, visit www.novusglass.com or 1-800-77-NOVUS (800-776-6887) for a NOVUS location near you. For franchise development information, contact 800-944-6811.Back