I want to share an interesting ad I saw in the paper the other day: Wealthy fast-food addict in search of an Austin business consultant to guide him in the purchase of a fast-food franchise so he can save money on burgers and fries.
I didn’t really see that ad, but I know Texas business strategists and business coaches all around your area that could help that person, or you, find and purchase a franchise by guiding you through the process if that’s what you want to do.
It just so happens that, even though I’m awful with an opening joke, I know a few things about buying a franchise myself that I learned from Austin business consultants. This time I’ll be serious, so please keep reading.
As with anything, common questions arise that you want to be answered before you begin to even consider buying a franchise. Before you consult with a Texas business consultant or business strategist, you must read the answers to those questions and save yourself some time and maybe money.
How does a franchisor make his money?
They consult a Texas business coach as you will! Then, they charge a hefty fee for a franchise. After that, they collect a percentage of the sales and also sell supplies and services to the franchise.
Consult an Austin business consultant to find out the standard fees and percentages for the industry in which you want to buy a franchise.
What’s more important? The initial fee or the charges down the road from sales, etc? Assuming you’re buying into a successful franchise, definitely concern yourself more with the charges you’ll incur down the road.
Those charges come directly from a percentage of your sales, not profits. Too high of a percentage can deflate your profits.
Beware of any hefty fees required upfront. Make sure the franchise is successful. Most importantly, consult with a Texas business consultant or seek the help of a Texas business coach before signing any contracts.
Well, is it worth it to pay a percentage of my sales?
I can’t decide that for you. Austin business consultants say that if you possess industry experience then, yes, it could be worth it for you. However, if you’re new to the industry you want to buy into and just want to try your hand, it might be best to work for someone else first.
Texas business strategists point out that you pay a percentage of sales. That means what you pay doesn’t take into account operating expenses and the like. If you don’t know the industry, you can’t plan ahead so that you can pay those fees and still make the profit you need.
What other costs can exist?
You might have to pay a percentage of advertising costs and not just for your area. This might include local, regional, or even national costs. Again, consult with an Austin business consultant.
Take advantage of the help that Texas business coaches can give to you to help you make the smart choice.
What else should I watch out for?
Talk to other franchise owners and a Texas business consultant before proceeding with buying any franchise. I can’t say that enough! However, you should know if you could sell the franchise easily, if the franchise fees can be increased for any reason, and how your industry skills stack up against others who bought into that franchise.
Again, talk to a Texas business strategist and other franchise owners. The time you take to do your research will pay off in gains instead of losses.