If there was ever a better time for women to take the helm of entrepreneurship, it’s now. Franchising presents ample opportunities for you to triumph as a business owner. According to Franchise Business Review, 32% of franchises are women owned, with 87% reporting job satisfaction. In another study on the demographics of franchise prospects, about 24.7% of millennials are interested in pursuing a franchise opportunity.
Should You Buy A Franchise?
The most common type of franchising involves investing in an existing business name and model. Examples include Budget Blinds, Keller Williams or Dogtopia. Often, the parent company provides resources for training, functions and marketing to get your franchise off the ground. A franchise might appeal to you for several reasons, such as the chance to make a difference in your community, autonomy, flexibility and greater work-life balance.
Things To Consider Before Buying A Franchise
Deciding to purchase a franchise is exciting, but you should ask yourself whether you’re ready to dive in. A few prospects and unexpected circumstances will determine your success in your business endeavor. Here are a few considerations for potential women franchise owners.
1. Research is critical.
You might know what franchise you’d like to buy, but thorough research is the first step. What do other women have to say about owning the particular investment?
There might be a better one for you to consider. The International Franchise Association, Franchise Direct, Coalition of Franchisees Association, and the American Association of Franchisees & Dealers are excellent places to start your research and get advice regarding franchise opportunities.
2. It requires an upfront investment.
Although purchasing a franchise is often less expensive than starting a business, you must still prepare for upfront costs. Depending on the type, fees typically run about $50,000 to $200,000 but could cost under $10,000 or millions. Other initial expenses include attorney and accountant fees, real estate costs, renovations, equipment, inventory, training, advertising, and maintenance fees.
3. There should be a proven track record.
The appeal of owning a franchise is investing in an established brand with a positive reputation. Consumers will already be familiar with the enterprise and know what to expect.
Many franchises also have a proven business model to guide success, which makes financial independence a possibility. Franchisors want you to do well because the whole brand benefits when franchisees make a profit.
However, franchising has its risks. You are still expected to follow the brand’s rules — a struggle for those seeking full control. Likewise, franchisees have a 20% to 50% failure rate, so knowing the risk variables — from poor management to economic downturn — before investing is essential.
Other things to consider is whether the type or brand of franchise you’re buying into aligns with your values and lifestyle. Maintaining a set of values helps brands attract and retain talent, appeal to customers, and foster business growth. More importantly, they serve as a moral compass for everyone involved in the franchise.
Franchising Could Be Best Path To Business Ownership
Buying a franchise requires much work and dedication, but it could be the perfect career move for entrepreneurial-minded women. Weigh the advantages and risks, do your research and consider the costs to decide whether this investment is viable.