Why the Right Fit Matters in Buying a Franchise

Why the Right Fit Matters in Buying a Franchise

Doesfit matter? Yes, if you are buying a swimsuit. Yes, if you are buying fitted sheets or a truck bed liner. And a big yes, if you are interested in franchise ownership.

With about 3,000 franchises to choose from, there are lots of options and you certainly can’t research each and every one. There are numerous resources available that can help you select and evaluate a franchise. Resources include the Internet, International Franchise Association, the SBA and the FTC, and The American Association of Franchisees and Dealers, and a number of brokers. And finally, there are your personal preferences: where do you go for coffee, carpet cleaning, auto supplies, etc.? A good shortcut, however, is to match your financial resources and business skills to the franchise opportunity that most closely fits these characteristics.

How Much Do you Need to Buy A Franchise?

There are franchises available in many price ranges. Determining your financial assets is a good place to start. How much can you safely afford to invest? Your savings, your net worth, and the amount you will need for personal expenses for a period of time until the business is profitable will all be part of that equation. You can also borrow money for your franchise purchase, if you have a good credit rating. Banks usually require you put down 20% of your own money and you will need to complete a loan application, including a personal financial statement and copies of your tax returns for three years.

Keep in mind that lending institutions will be very interested in the track record of the business you choose. They feel more confident lending you money for a business with good name recognition and a robust advertising program. They will also look for a number of successful franchisees. The Franchise Disclosure Document (FDD) presents an investment range which is an estimate and not a set number. As a suggestion, be sure you have the financial resources to invest in the franchise in the event you need to invest additional capital in the franchise. Without a source of additional capital, you’re risking most of your initial investment.

Evaluate your Skills – Where are you A Rockstar?

This is the time to ask yourself not only what you can do but what you like to do. Are you a people person – someone who loves to make connections and will be a visible presence in the community? Great! That’s a skill that will be very handy as a franchisee. But if you are someone who likes hands-on work, there are also franchise companies that will fit your personal profile. It is important to find the one that will make you glad you took the leap to business ownership.

There are many resources for learning about franchise companies. In addition to those mentioned above, Entrepreneur Magazinehas been ranking franchise companies since 1980. To do so, they use data from questionnaires submitted by franchisors, along with data from the FFD. This list provides the investment level required and information about each franchise on the list: https://www.entrepreneur.com/franchise500/2019.

NOVUS Glass invites you to look at their opportunity, which provides a low-cost level of entry, 240 U.S. franchisees, and a solid record of success.Please visit NOVUSGLASS  or call 1-800-944-6811 for more information.

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  • Franchise 500 Ranked
  • Canadian Franchise Association
  • Franchise Direct
  • IFA
  • Top 50 Franchise