Franchises are the most accessible business opportunities available in the United States. Franchise ownership is a growing and diverse market, and over 30 percent of all franchises are owned by women and minorities. Even though a franchise is a very turn-key operation, there are still a few things emerging business owners should know in order to make their franchises successful.
Choosing a Franchise Business
Franchises have come along way from the stereotypical fast-food chains. There are franchises ranging from small, home office-run businesses to large hotels and hospitality resorts, and everything in between. The best advice before choosing a specific franchise is to drive around your neighborhood and assess what your community needs. Some areas are saturated with restaurant chains. Others are missing convenient places to get automotive care or dry cleaning. Other neighborhoods need pest control, custom signs, travel agencies, motels, or any number of niche businesses that have an eager customer base waiting to make purchases. By looking at what is lacking in your immediate area, you will get a good direction for the type of franchise you should own.
Talk with the Franchisor
Almost every franchise will connect you with a representative, who will act as a liaison between you and the parent company. From the initial meeting and every step leading up to your grand opening, your franchise representative will be there to provide information and answer any questions you might have. Speaking of which, you should be willing to ask questions if you are missing any information. Ask the franchise representative if the parent company does any matching for certain funding aspects, how much capital will be required upfront, if they will assist in finding physical locations, and if they provide any long-term help with retirement and exit strategies.
Financing Your Dream Franchise
Your franchise representative will let you know what your initial investment includes, and if any additional capital is needed. Most franchises already have established relationships with certain vendors, and may even require owners to use proprietary equipment to run their businesses. If your franchise requires a physical building, your representative will give you the specifications on the square footage, as well as any necessary build-outs. Many new franchise owners can get up and running with SBA loans and equipment financing programs. Others need special franchise financing to cover everything from working capital to equipment, and even commercial real estate.
At Nanaki Capital, we specialize in providing people with the funding they need to launch their dream franchises. Our team will work with you to understand your needs and help you reach your goals efficiently, so you can start generating revenue and embrace true entrepreneurship with your new franchise.
