How should you look for the right franchise system?
How is information procured within franchising?
This subject concentrates on the question of what you must take into consideration if you intend to join a franchise system by becoming a franchisee and an independent business person. It can basically be assumed that every franchisor wishes to sell his concept and will, therefore, present his system as offering the best opportunities. For this reason you should carefully plan your method of approach. You will be less spoilt for choice if you attempt to put together an information basis, which is as comprehensive as possible right from the very start. The following points should especially be taken into consideration:
The very first thing which you must carry out before entering a franchise system is to honestly ask yourself whether you fulfil the preconditions for a long-term active partnership. Ask family members, friends and acquaintances to give you their honest opinion and try to put together an objective picture of yourself. Having examined your strengths and weaknesses you should then consider which branch is best for you for the future on the basis of your knowledge and/or abilities.
Having reached a positive conclusion from the self-assessment you must then ask yourself what you wish to achieve as well as where and with whom. Not every person starting a new business is suited to joining a franchise system and before such a step is taken all other alternatives to franchising should first be taken into consideration. Should you then choose franchising you must tackle the problem of the large number of possible franchise systems. As a potential franchisee you are a courted candidate and can directly profit from the competition between the systems. You should, however, carefully consider your method of approach for joining a franchise system.
In addition to the documents, which the franchisor will make available to you during the initial contact phase you should also obtain further information from third parties. By intensively preparing an extensive contact with the franchisor you will find yourself in a position to check the franchise offer by asking specific questions and at the same time put your own competence to the test. The search for information should for the most part concentrate on the main areas of economic situation, the system’s image and the system’s background.