How to choose a franchise
JOBURG - IT IS a serious decision to take on a franchise, and just because you are buying into an existing business, it does not mean that it will be a success.
This according to Morné Cronje, the FNB head of franchising, who said there are a number of factors to consider before embarking on the journey of investing in a franchise business.
- What are your dreams and goals?
Cronje said owning a franchise is a perfect opportunity to find something that matches an individual’s dreams and goals. “[Franchisors] can explore the dreams you hope to accomplish through franchise ownership and determine your skills and preferences so that the companies you investigate match well with your passion and interests,” he explained.
- Do your research if there a demand for the franchise
“Speak to franchisors and franchisees that were and are currently in the business,” added Cronje. He said if there is no demand for the particular service, then a business will most likely fail.
- Decide on which business sector you would like to operate in and monitor the competition.
Cronje explained that it is healthy to have some competition. “It keeps you on your toes and keeps your business relevant, but you don’t want to be in a position where there is so much competition that they put you out of business,” he said.
- Support from franchisors and franchisees
“You will need to get the proper training and support from your franchisor so that your business can be a success,” said Cronje. “Try to spend at least one day with a franchisee.” Cronje believes that this is the only way to obtain an accurate idea of how franchisees spend their time and what they are doing to make them successful.
- Potential for growth
“If you invest on a whim, your business might be no more after a few years,” he explained. “So do your homework and invest in something that is long-lasting.” Cronje said if a franchisee is to succeed in the industry, it is important to know what the core business is and to develop a strategy around that.
