Deciding Which Franchise To Buy???

Here are 3 Factors You HAVE To Consider!!

I know you all want the easy answer.  It would be great if I could just say, “XXXXX is the best franchise out there!”, but sadly that is not the case.

Here are the most important factors when trying to select a franchise:

 

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  • The MOST IMPORTANT factor when deciding on which franchise is right for you is do you have the realistic income projections / expectations? 

    • Most franchises have an income ceiling!
      • This may or may not be advertised, so always make sure you speak with a few franchisees before committing your money.
      • For most franchises, you will not become a millionaire by opening just one franchise location.
    • To make real profit (not just “buy yourself a job”), you will need to quickly become a competent operator and then open additional locations as soon as possible. 
      • Each additional location you open should in theory do considerably better than the previous as you become more experienced and know what to look for.
  • The second most important factor that you need to consider is what you would enjoy doing on a daily basis.  Believe me this is not an empty statement.  I know many franchisees that are making decent money and are very unhappy with their chosen business.  So, what are your passions and your interests??

    • For some reason, every time I tell this to people they are genuinely surprised.  As you enter into a multi-year business agreement, it’s hard to put a dollar value on that feeling of dread you might get in the morning when you realize that it’s time to open up shop AGAIN and if you don’t go, no one else is going to do it for you. 
    • Chances are your business will not succeed if it doesn’t match your interest/passion unless it is simply so profitable that you can hire a competent manager and be completely hands off … this of course almost never happens in a franchise.
  • The third factor: What is your Budget??

    • There seem to be two common mistakes that I find:
      1. People who try to over leverage themselves to get into a franchise they can’t afford,  that could literally ruin them if there’s an economic downturn.
        • ie. Having a 75K budget, leveraging their house, and opening a new Quiznos.
      2. People who get into a franchise that’s too petty based on their budget and are therefore significantly limiting their income potential as well as actually increasing the manual labor they will be forced to put in.
        • ie.  Having a $1mm budget and buying an average 7-Eleven.

I’m positive that in the right location, with the right operator, any franchise could be profitable.  I’m also sure they all have income ceilings, which vary greatly.  And even when it all makes sense financially, just because one franchise works well for your friend, doesn’t mean it will do the same for you, because if you hate what you do, success will always be out of reach.

If you are considering purchasing a convenience store and would like unbiased answers to all of your questions as well as advice on specific store locations:

Contact me at: c-store-expert@greatconsult.com for a FREE e-mail consultation.

If you would like me to visit the particular location I will be able to provide you with a more exact estimate of the store’s income potential .

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2 Responses to “Deciding Which Franchise To Buy???”

  1. Jay Says:

    There is so much planning and organizing that has to be done before starting a franchise opportunity. Great advice on choosing the right one.

  2. joe d Says:

    hi

    im curious- what c-storedo u think is best to franchise with?
    7-11 or a circle k? i am from nj…


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