The thought of becoming a business owner can be both thrilling and daunting! Many people want to start their own business but are confused about how to get started.
This article will help you understand what it means to own a franchise, decide if becoming a franchisee is a good fit for your objectives and personality, lead you through the entire process, and reveal the best franchises to buy in 2024.
What Is a Franchise?
A franchise is a business wherein the owner of a brand and business model grants you the rights to use these assets (together with all associated trademarks, goods, systems, and so on).
The franchise owner is the franchisor, and you are the franchisee. Getting started with a franchise is a much easier task than starting something from scratch which is one of the biggest reasons many people opt for franchising over starting something of their own.
A Step-By-Step Process to Buy a Franchise
Understanding what’s involved with starting a franchise can alleviate a lot of the stress and help you discover the best franchises to buy in 2024.
Step 1: Know Your Why
Owning any business can be an emotionally, physically, and financially exhausting experience. Before investing in a franchise, be sure you understand why you want to own one.
If you believe that operating a franchise is more accessible than owning any other form of business, bear in mind that all businesses have obstacles. But understanding your motives and what you hope to get out of the experience will help you make the right decision.
Step 2: Research & Decide
A franchise’s popularity does not always mean that it is the best option for you. Don’t skimp on your research. Expect to spend several weeks on this task, and keep in mind that the best franchises to buy in 2024 should meet the following conditions:
- A Proven Track Record: It’s best to go with a franchise that has a proven track record. This can give you confidence that you are investing your money in the right place.
- A Growing Market: The franchise you choose should be in a rising market. It may be tempting to go into an industry that is trendy at the moment, but researching the industry forecasts and future demand for your product is vital.
- Social Responsibility: People like to do business with socially responsible companies. Learn about the social responsibility efforts of the franchises you’re considering.
- Competition: Every business has competition. And a little competition might be beneficial, but too much competition can be detrimental to your organization.
- Franchise Fees: Make sure that you clearly understand the revenue model and how the profit-sharing works in that franchise.
- Working Environment: Ask the franchisor to connect you to a few existing franchisees. These contacts will provide better insight as to the franchisee/franchisor relationship as well as day to day operations and conditions.
Step 3: Start the Conversation
Once you’ve done your research and are ready to start conversations with a particular franchise, you should reach out via their website or connect with one of their franchise development representatives. They will likely walk you through some basic information about the company, obtain some information about you, and if warranted, will invite you to have more in depth conversations with the leadership of the company.
Step 4: Financing
A reputable franchisor will have a transparent, detailed finance meeting with you. In efforts to have a clear understanding of your financial capacity to start and sustain your business, they will likely supply a financial worksheet for you to fill out. This will also help you know the costs involved with starting your business. The franchisor should also be able to supply financing options should you require them.
Step 5: Finish All the Paperwork
It’s a good idea to review the franchise agreement documents closely as you will need to abide by any guidelines set forth by the franchisor for the duration of your contract. Ensure that you understand the fees and franchise operations before making this big commitment.
Step 6: Get Training and Support
Congratulations! You’re a business owner! Luckily, you have the advantage of working with a business that already has a brand, an audience, and tried-and-true methods for reaching them. The franchise likely has their own marketing team and support teams that will assist you with:
- Branding
- Product positioning
- Marketing strategies
- Marketing collateral
Best Franchises to Buy in 2024 in Your Budget
If you’re looking for the best franchises to buy in 2024 with an affordable cost to entry, iCode School is an excellent choice. iCode operates in the STEM education market, which is one of the fastest-growing sectors and is projected to grow for the foreseeable future.
They also have dedicated marketing and internal teams that will support you as you are starting and running your business.
Connect with an iCode representative to attend a discovery day call and learn more about how iCode works. Get in touch with iCode now!
