10 steps to buying a franchise
10 steps to deciding between Franchise Opportunities
- Know yourself. Research yourself before you start looking around for franchise opportunities in South Africa. Consider your strengths and weaknesses. Will you be able to manage the high level of personal energy to get your own business started, will you be able to work alone or will you need staff?
- Know your financial commitments. Costs of Franchises can vary considerably. You may have to consider borrowing and remember that banks need to be convinced that their loans will be repaid. What the proposed franchise opportunity can afford is more important than what you have.
- Research franchising. Read up on franchises in South Africa and find out all you can about the unique relationship between franchisees and franchisors.
- Know the industry. Look at different types of businesses that you feel will suite you. Although you don’t necessarily have to look for a franchise opportunity in an industry you are familiar with, research these different industries until you feel comfortable about the service, products and working environment.
- Evaluate the franchise. Once you have become interested in a particular franchise, have information sent to you. Note your first impressions and any initial questions that you may have. Clarify all your concerns with the franchisor. Closely examine the outline of the franchise particularly the manner in which the franchise is sold and operated.
- Questions for the franchisor. Do not be afraid to ask questions relating to the profitable viability of the franchise. You need to find out the success of the franchise, talk to other franchisees as well. What training and support exists? Is the franchise bound by any code of practice?
- Talk to the franchisees. If you talk to other franchisees of the franchise opportunity that you are considering, you will get a realistic assessment. They will be able to give you advice and tell you more about the business cash flow.
- Specialised financial advice. Find out if you can get financial reports and projections from franchisees.
- Specialised legal advice. To understand the terms and conditions of the franchise agreement, you should use a lawyer to explain the legal terms you have difficulty with.
- Check what you are paying for. Make sure that you understand what the up-front fees are for and what you should expect.
Warrior Paints – a sound franchise opportunity in South Africa
When you partner with Warrior Paints by owning a franchise in South Africa, you are making a sound investment for the future. We supply you with store layout and initial setup technical backup and training, in-store promotional material and we protect your area rights! Find out more about Warrior Paints franchising opportunities.