Secrets Your Parents Never Told You About Franchise Investigation Procedures and Franchise Prices
In my most recent post about franchise investigation procedures I mentioned that you would need to look at the business model, the business, and your own motivations and interests.
As the franchise coach I can honestly tell you that your motivations and interests are the primary perspective for you when considering a certain type of franchise model.
Confidence In Your Ability
Here’s a short list of questions I’d like you to review and answer, in detail.
- How confident are you in your ability to own and run a business?
- What strengths do you have in owning and running a business?
- What weaknesses do you have in owning and running a business?
- If you have challenges answering the last two questions, go back and look at your answer to the first question.
- How confident are you?
Self-Awareness Is Your Goal
The more you understand your strengths and weaknesses, and how your talents, values, and behaviors correlate to owning and running a business, the easier it will be to undertake the franchise investigation procedures that are outlined below. Look under the hood and understand how you got to where you are and where you want to be going.
Remember that your level of self-awareness and confidence is a critical component to the franchise review process because franchisors are keenly interested to understand your previous industry experience, specific personal characteristics or skill sets, credit history, and financial stability. Which franchise you buy is not important at this point. You are.
Follow The Investigation Process Model
Yes, every successful franchisor uses a franchise investigation procedure system – a series of steps used to determine primarily if you can follow their investigation process model. If you can, then chances are you might also be able to follow the systems the franchisor has developed for operations, sales, marketing, training, and administration, to name a few.
Reviewing The Franchise Business Model
Once you decide to investigate a franchise, with or without a franchise coach, you will receive an information kit from the franchise representative. Typically this information will include marketing brochures, general information about the company, and oftentimes the package will include a blank financial form and a personal questionnaire for you to complete for the franchisor.
Once you return the information to the franchisor they will begin a series of meetings with you, most often weekly. Depending on the franchisor, you may or may not receive a Franchise Disclosure Document (FDD) that includes a wealth of information about the franchise. With every piece of information you receive from the franchisor be curious, inquisitive, engaged, and ask a lot of questions. Learn as much as you can about the philosophy, culture, values, and strengths of the model.
Franchise Price Quibbling
Honestly, franchisors have strong rationale and backup for all their pricing models. Try to understand why the franchise prices are designed, for what purpose, and with what results. Try to understand how the franchise price model helps make the model successful. Avoid quibbling about pricing.
Begin With The End In Mind
Yes, Steven Covey had it right when he coined this phrase. The end point in a great franchise investigation procedure is making a decision. But more about that in our next post. For now, make sure that you have answered all the questions about YOU first.
Make sure YOU are ready to pick up the phone or fill in that online questionnaire to investigate a franchise.