Investing in a franchise offers a number of benefits. For instance, if you want the benefits of small business ownership without having to start from scratch, owning a franchise could be a great plan for you.
Owning a franchise means having the support of a bigger company, which will typically offer resources, materials, products, and whatever else you need to run your company. Having experience isn’t even a requirement, in most cases.
If you’re looking to buy a franchise with a partner, then this article, which F45 Training asked us to write, is going to give you some advice for a successful partnership and franchise.
1. Choose an Industry that One of You Knows
The beautiful thing about a partnership is that you get to use each other’s strengths to the advantage of the business. While you don’t need business experience to buy a franchise, as training will be provided, having a partner with knowledge of the industry will make it easier to search and evaluate opportunities.
Ideally, one of you will be handling the front-end while the other handles the back-end, and it’s advantageous if one of you knows the industry well in order to offer the best to your customers and keep your franchise alive.
2. Assess Your Roles in Your Partnership
If you or your partner are only interested in being a financial partner, then the other partner must be comfortable with carrying most of the workload. Whatever the situation is, you and your partner need to sit down and figure out who will be carrying which part of the workload. Knowing your roles is key to a successful franchise partnership.
Just as it is beneficial for one of you to know the industry, it is key for one of you to understand business finance. One or both of you could easily take a business finance course to learn about cash flow and bookkeeping to help you understand what your financial picture will need to look like for your franchise to be successful.
3. Run the Numbers
In many cases, a franchise partnership is desirable because the financial load can be shared. While this is true, it’s still critical to focus on the numbers and make sure they work for you.
Assess the amount being invested versus the expected net income for the first year. Is it enough? Are both you and your partner satisfied with these numbers? If yes, then you’ve got nothing to worry about, but if the numbers fall short, you’ll have to go back to the drawing board to decide what can be done to increase the bottom line and benefit both you and your partner.
4. Learn About Financing
Researching financing options can be valuable. Partners can share the financing to take less of a credit burden, and that can be very beneficial. Many franchises have built-in financing options that give you and your partner some flexibility in financing. So, when you and your partner discuss financing, you’ll want to look into all your options before you invest.
5. Learn from Other Franchise Owners
You are not alone. There are plenty of other franchise owners, and there are a number of franchise partnerships out there. Better yet, there are likely many in the very franchise you’re interested in.
Before investing, it’s important to talk to other franchise owners and glean insights from them. Learn about their partnerships, specifically, and find out what worked best and what didn’t work at all. Getting this information can provide the insights you and your partner need to hit the ground running.
Starting a franchise is an exciting endeavor, and launching such a business with a partner can be an amazing adventure. It’s important to remember, however, that no two partners are alike. It’s important to assess your strengths and weaknesses, as well as those of your partner. Doing this will help you more successfully navigate your partnership and delegate the tasks that are necessary for your franchise.
Giving your franchise the best chances from the beginning is a smart idea, and partnering up is a great way to ensure the longevity of your franchise. Using the tips and strategies in this article, you and your partner can start the process of doing everything possible to yield nothing but success from your franchise.