What You Need to Know before you buy a franchise

One of the fastest ways to a business in most countries is to buy a franchise business.

These franchise companies are usually set up as a turn-key, so that when an investment is made, you can open your business very quickly. These systems are for the operation of businesses that are usually pretty easy to implement) proved (in particular the opening up of the same kind of business even without a franchise comparison.

Besides most of the franchise, when they beginSales in a metropolitan area, have already become familiar to the potential customers who live there, so that the brand is already familiar with the potential customer base.

Let us say now that several years ago decided that, you wanted a grocery store in a community grows in the coming years in view of new homes, businesses had their own, strip malls. After looking at each franchise shop conveniently located in the area you have decided to invest in aWhite Hen Pantry store. And let us say that if you assembled a list of store brands in order of preference (with white chicken at the top), 7 Eleven, towards the end of the list.

So they invested in the white hen save. She loved her the best merchandising and, preferably, that kind Slurpee on the sale of the business. And let us say, your business developed very well over time, regardless of how the parent has been taken.

Make a surprise, like a white hen, shopkeepers, when severalYears later, purchased 7 Eleven white chicken and white hen saves all changes to 7 Eleven stores. And since you Slurpee sell. Whoopee.

I learned from another company had recently discovered that both company-owned stores and franchise stores. At one point, has a Vice President at the company, which was more upscale shops for all.

No matter how the franchisees felt this change possible. This VP was able to convince the company believe that their idea was goodMarketing idea, and all transactions (both company-owned and franchisee-owned) have been changed to this new upscale brand.

I'm not sure whether it is a marketing analysis of their idea has (I can not imagine that they skipped step!). But the idea really was not upscale a good idea. The clientele who wanted to attend this type of store did not acquire upscale products. Instead, customers wanted the product cheaper.

After sales suffered for some time, the company changed the focusand went back to the "non-upscale" store once was.

My thought was: If they only company-owned stores, it was who cares? Only the company would have suffered. But the fact that it seems a lot of franchisees who were forced to go the upscale model (and lose sales just because of it) is simply wrong. But after the franchise agreement, the franchisor had every right to change the focus of the business.

So, what is the moral of the story?

Do you know your franchise well ahead ofYou buy:

How much power are the franchisor? How likely the franchisor is completely changing the marketing focus on? If they change their marketing focus on, as is likely, that the change to success? If the franchisor change idea (that you are forced to accept and implement) makes you lose money, you are entitled?

Keep these questions in mind, if you already consider investing in a franchise business. The franchising company you buy today might not be what the companywants you to have in the future.

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