Starting a business seems intimidating, which is why many budding entrepreneurs would rather prefer opening a franchise. Among all options, sandwich shops usually have a considerable chance of success because it doesn’t require a significant deal of experience from its owners.
Exciting, right? Before you open a new tab to search for the start-up cost for a sandwich shop, you should do these things first:
Do your research
Make the most of all the publicly available information about franchising. For instance, start with the Federal Trade Commission’s A Consumer’s Guide to Buying a Franchise.
Get to know your customer — what they want to eat and where they like to go. Do they like their sandwiches savory and meaty, or do they prefer healthy vegetarian options? This will help you choose which franchisor would be ideal.
Read the latest news and talk to other franchisees to further your research if you’re still undecided. Remember that you’ll be sharing the same brand identity with other franchisees, so be realistic and sensible in making your choice.
Even though a franchise may have an impression of an “instant business,” it doesn’t mean that no effort is needed. Know what you can bring to the table and if your personality matches the business.
Would you be better off working with a giant corporation or would you rather be partnering up with a small promising one that’s more to your liking? Some would only grant a franchise to those who have at least worked for the chain. If you’ll go for this type, it would be a prerequisite that you’ve worked in the same line of business.
Seek help if needed
Seek opinion from professionals before signing that paper. Consult your lawyer to make sure that no fine print is missed and everything is clear with you.
Have your accountant assess the numbers and ensure that the numbers add up. Inform your insurance agent of your intent, so they can guide you through the process. Unfortunately, not all franchisors want what’s best for you. It’s better to have your team ready to make sure that you’re both on the same page.
Do the numbers
Costs may run higher than what’s declared on the Franchise Disclosure Document. Don’t take whatever you thought was the minimum in buying a franchise at face value.
Some franchises may only break even on the first few months and then become profitable after a year. There is also the cost of the location. It doesn’t mean that since you’re under the same franchise operation, you would spend the same amount as with other franchisees. It’s better to be realistic and have capital ready beyond what was expected.
There are many benefits of buying a franchise. There’s the recognized name, time tested operations and worry-free training. Despite all these, treat this like you would when starting a new business. Be wise and ask the right questions. Do the work and choose the right franchisor to enjoy not only the marketing resources, but to also avoid the mistakes that aspiring entrepreneurs usually face.