Investing in a franchise can be a great way to open your own business. Starting a franchise gives you the right to use the trademark, service mark, trade name, or advertising symbol of the parent company. Instead of having to build the brand of your local business from the ground up, you get the name recognition of the existing brand. When you purchase the franchise, you purchase the tried-and-true methods for running the business. All these benefits make opening a franchise business very attractive. But investing in a franchise is not a decision to be made lightly. Franchising is expensive. Before you invest in a franchise business, take the time to learn exactly what that investment entails.
Investing in a franchise is a major purchase. You wouldn’t buy a house without a walk-through or purchase a car without taking it for a test drive. In fact, most people have a house inspected before buying it, and most people read up about a car’s track record before buying it. In the same way, it is important to learn as much as you can about a franchise before investing in it. It’s not enough to base your decision on the popularity of the business, its success in other markets, or hearsay. It is critical that you know how the business works, how financially stable it is, and what the parent company will require of you once you purchase a franchise.
There are a few distinct areas you should consider when thinking about the validity of a franchise.
Even a great company will fail in a location that has no use for its products or services. If you are considering opening a home healthcare franchise, take the time to investigate if there is a need for home health care in your area. As America’s population ages, the need for home health care is expected to rise nationwide. Right now, the demographics show that people aged 65 and up are the fastest-growing population segment. Consider how many people in your area belong to this target population. Are there already other home healthcare businesses meeting the needs of this population? If not, the market might be ideal for you to open a home healthcare franchise.
Investigate the background of the parent company. Request the company’s Franchise Disclosure Agreement and read through it in detail–or better yet, have a lawyer or accountant read through it. This document will provide you with the financial statements for the company, the exact costs associated with opening a franchise, the history of the company, and details of any legal activity. It will also provide contact information for past and current franchisees. Examining this document will give you an inside look at the stability of the company and how much it will really cost to open a franchise. Reaching out to franchisees will give you insight into what it is really like to work with the parent company. Past franchisees can tell you why they left the franchise. This information will help you to make an informed decision.
If you are interested in starting a franchise in home health care, consider A Better Solution in Home Care. Our team would love to speak with you about the logistics of opening a healthcare franchise in your location.