Have you ever thought about buying a franchise business? Franchises are so successful and pervasive today, that most people have thought about it at some point. However, if you are seriously thinking about it, then you must perform extensive due diligence. Franchise companies are very different in what they offer and how they support the franchisees, so you must know the details.
Legitimate franchise businesses will have proven business systems, comprehensive training, and capable and experienced leadership. A supportive franchisee community and the right fit of company culture are also important. A franchise business is a long-term commitment, so you need to know who the people are, what they represent and if you can work together successfully.
Ask a lot of questions on all sides of the business. Some questions you might ask are:
- How does the company handle disagreements with franchisees?
- What is the litigation history? Many lawsuits are not a good sign.
- What do top franchisees do to be more successful than others?
- How do customers feel about the business?
- Does the company have in-demand products and services?
- Is the franchise in a stable or growing industry?
- Does the company continually invest on behalf of the franchisees?
- How will they manage challenging economic situations?
All companies have different requirements for initial investment, required net worth, and profit potential and returns. Be sure to understand ALL financial commitments before you commit to anything. The Federal Trade Commission (FTC) has created “Buying a Franchise – A Consumer Guide” that is a good resource.
From a more personal point of view, find a business that you would love to be part of. Ask what level of business experience or skills you need. Understand the business model to be sure it is one that you can support. If you are going to be successful, you must believe in the vision of the franchise. You should have the confidence that you will have a trusting and supportive relationship.
Find a franchise business that you can love because they are not all the same
Look for a franchise business that fits your goals and offers the support you need. Contact us today to learn more about franchise businesses.
About Pigtails & Crewcuts
Founded in 2004 in Atlanta, Georgia, Pigtails & Crewcuts is a children’s hair salon franchise dedicated to making haircuts fun and stress-free for children and their parents. With nearly 50 locations across the nation, Pigtails & Crewcuts specializes in quality haircuts for boys and girls of all ages, and also hosts children’s parties. In 2010, Parents.com named Pigtails & Crewcuts one of the Top 10 Chains for Kids’ Birthday Parties. In addition, Pigtails & Crewcuts has been named to the “Franchise 500” list as a top franchise by Entrepreneur Magazine for five consecutive years. To learn more, go to pigtailsandcrewcutsfranchise.com
Michelle Holliman, Vice President of Franchise Development, 877.752.6800, MHolliman@pigtailsandcrewcuts.com