How should you look for the right franchise system?

Are you asking yourself the right franchise questions?

By carrying out a self-assessment, you can find out if you are really the right person for starting up a franchise business. What is important is to assess yourself realistically and honestly. For people who run and own their own business often find themselves facing challenges that go beyond those faced by an employee.

Personal Requirements

  • Are you aware of the sacrifice involved in building up your own company as far as time, money and security are concerned?
  • Does your family fully support your decision?
  • Is your family aware of the scope and possible consequences of your decision?
  • Is your family able to cope with the possible problems which could also last for a long period of time?
  • Is your health strong enough to cope with the physical and psychological burdens of founding a new business?

Character Requirements

  • Do you have the typical fundamental characteristics required?
  • In what areas do you perform best as a result of your inclinations, experience or contacts?
  • Which social, professional or regional target groups do you know especially well?
  • What requirements of these target groups are not yet being provided?
  • Would providing these requirements give you satisfaction over a long period of time?
  • Would the involvement of a third party to complement your own personal strengths be an advantage in achieving these aims?
  • To what extent does the business idea of a franchisor correspond with your own personal aims?
  • Are you able to accept indefinitely the restrictions imposed by such a system on the set-up of your business and the freedom to make decisions?
  • If necessary are you prepared to accept unwelcome decisions made by franchisors?
  • Are you prepared to have the name of the franchisor on your business sign rather than your own name?
  • Are you suitable for the team work required in franchise systems?

Qualification Requirements

  • What concrete professional position would you carry out in the business in the branch of economic activity?
  • Are certain professional qualifications required to take part in the franchise system?
  • Do you possess the required theoretical or practical knowledge?
  • Do you need special knowledge of a branch in order to carry out the business?
  • Does your future work require the management of employees?

Financial Requirements

  • Do you possess the necessary financial means and reserves to build up your own company and cover your personal commitments?
  • Are there any reasons which might stand in the way of a loan to cover the remaining amount being granted?
  • Have you checked the possibilities of receiving a private loan?
  • Have you obtained offers on receiving loans from different banks?
  • Have you applied for public grants within the correct period of time?

Legal Requirements

  • Are there any non-competition clauses in your present contract of employment which may stand in the way of you starting your own business?
  • Do you fulfil the legal requirements for starting a new business?
  • Do you require suretyships to cover the loans?

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