Snagging the first home inspection franchises for sale you come across might seem like a good ideal for anyone looking to try their hand at entrepreneurship. Being part of a bigger and renowned brand gives you a considerable edge on the market.
It increases your chances of success, unlike when you strike out as a little obscure startup on a street corner. However, you need to curb your enthusiasm and address a few crucial issues before taking a plunge.
Understand the numbers
Item 7 on the franchise disclosure document outlines all costs you’ll have to raise to join the franchise bandwagon. Other than the franchise fee, there will be marketing and signage, equipment, startup inventory costs, and the like. In addition to the initial amount, you need to consider additional charges.
It is the amount of money necessary to keep the doors open before the business peaks. Ideally, the amount should work out to about ten percent of the initial costs. For the best results, you should have at the additional capital to tide you over at least six months after launching.
Understand termination, renewal and dispute resolution
Eager to dip your toes into entrepreneurship, it is tempting to bud with overrunning enthusiasm. At this point, you may not want to entertain any negative thoughts or outcomes. Unfortunately, that’s not how the world works.
At some point, you may find yourself at loggerheads with the franchisor over one matter or the other. You need to be clear about the dispute resolution, termination, and renewal process. In addition to understanding item 17 on the franchise disclosure document, knock on a few doors.
Talk to existing franchisees and understand how the franchisor handles disputes. While that might seem like overkill, remember, it’s your life savings on the line here.
While buying a franchise can give you a considerable leg up in a new market, you need to tread carefully when making a choice. You need to understand some crucial factors about the business before taking a plunge.