Planning on taking charge and buying a franchise? Investing in a franchise in a commitment
both personally and financially and if done right, it can result in exceptional benefits.
If this is your first time investing in a franchise, here are 5 steps that might help you make the
right investment decision. Here’s how you can prepare yourself for the opportunity and ensure a
Study the market/industry
Before you step into the business, any business, it is important to keep track of the industry.
Study the market demand and supply with reference to your locale, local demographics and
Research about the company
Buying a franchise has given you access to using the brand’s name and goodwill. Investing in a
franchise that is well known, has a track record for profitability and a good reputation is likely to
draw more customers.
Some things you might want to consider are:
● How long has the company been in business?
● What is the crowd reaction/response to the brand?
● Reliability and reputation of the brand.
Keep a check on the money
Look beyond the basic costs of setting up a franchise. While a good franchise provider may
support you with acquisition, training and marketing, make sure to have enough funds to get the
business up and running initially. All franchising companies will take a check into your fluid
capital, assets and liabilities and net growth.
Location is key
The fact that a business’s location can play a crucial role in its success comes with no surprise.
Do your analysis, read local demand, analyse competition in the area and pick a prime location
for your franchise accordingly.
Avail support and training
Talk to other franchisees, people with experience in the field you plan on entering. Also seek
maximum information, support and training from your franchise provider who should be more
than willing to help you with all your queries and issues.