Should I Buy A Franchise?

Answers to your questions about Canadian franchises

So you are thinking about buying a franchise?

It’s a big decision. Buying a franchise can be a life-changing event and for the vast majority of franchise owners, it can be the start of a long and prosperous career change. Franchise ownership offers freedom, some amount of control and the ability to jump into an existing, systematized business.

In a 2012 study, FranNet, a leading franchise consultancy firm, noted that franchises succeed at a 42% higher rate than other types of small businesses. The reasons are simple: successful franchises have proven business models, brand power and layers of training that give a small business owner, especially a first-time owner, a significant advantage in the marketplace.

Franchising is more than French fries

When people think of franchise opportunities, they often think of the brands they pass each day — mostly food-related franchises such as McDonald’s, Boston Pizza and Tim Hortons. The best-kept secret about franchise ownership is that some of the most successful franchises are not in the food industry. In fact, they are probably brands you have never heard of, but they are generating excellent earnings for owners and come highly recommended by the people who already own one.

Video Excerpt: Common Franchise Myths

Excerpt from my FranNet seminar. For the full version, as well as a free eBook answering the Top 10 questions people ask about the franchise industry, click here.  

How to Avoid a Costly Mistake

Franchise ownership may be an excellent option for some, but it isn’t for everyone, and not every franchise is a great franchise. There are more than 1,200 franchise systems active in Canada and more than 3,000 active in the United States. More than 80% of franchise systems have less than 50 locations (which isn’t a red flag in itself) and the overwhelming majority are younger systems.

Canadian franchises operate in 80 different industries, so there is a lot for you to choose from. The key is to find a franchise that enjoys a solid market segment, is well managed, has the resources necessary to provide outstanding training and support, and has a culture and business model that fits well with your goals, skills and experience.

In my free eBook, I answer 10 common questions that people have about franchising:

• What’s hot in franchising?

• What are the common mistakes people make when buying a franchise and how do I avoid them?

• How much money do I need to buy a franchise?

• How do I research a franchise and find out which franchisors are strong?

• How much can I make?

• How soon will I start making profits?

• Do I have to operate the business I buy?

• How does the success rate compare to other small businesses?

• Do I need experience in the same industry as a franchise I’d like to buy?