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Before you start looking seriously at franchises that might be your ticket to a future career as a business owner, you need to figure out answers to key questions that may make the difference between success and failure.

You’ll need to think about who you are as a person and where you are in your career journey. A little self-reflection will go a long way toward helping you choose a franchise operation that is the right fit for you.

Consider: 
Does your family support you?

As a franchise coach who has helped many business owners buy franchises, I think this is by far the most important question on the list. With the commitment and time required of an independent business owner, particularly during the start-up phase, if your spouse or other critical family members are not on board, your answer is to stop here. If you feel this is truly a passion for you, you’ll first have to bring your family on board. Just think, if you can convince those who know you best, selling future clients will be a piece of cake.

What types of businesses interest you?

The range of franchises available to you is practically as wide as your imagination. Write a list of your strengths and weaknesses. How do they match your interests? A franchise coach can help you with this process.

How much time and effort are you willing to dedicate to your business?

It’s not an all-or-nothing question. Some franchises require fewer hours of work than others. But you need to know what you require. Is it a 24-7 commitment or maybe something you can combine with an existing career?

Are you qualified to manage a business?

Be honest with yourself, and at the same time don’t shortchange your skill set. Many skills developed in first careers can easily be adapted for second careers. So when you develop your list of skills, think globally. If you have experience managing employees, you might want to choose a franchise that capitalizes on your management strengths. On the flip side, if you have sales experience or have an outgoing, positive personality, you might consider a business where the owner is often involved in sales. The main point is to play to your strengths.

How much money are you prepared to invest?

And this doesn’t just include the upfront franchise fee. Depending on the business type you need enough money on hand to last from three to 12 months running your business. This might also include the costs of setting up an office, paying rent, and covering other expenses until your business reaches profitability.

Are you comfortable taking on debt?

This question is important when considering the price range of a franchise to consider buying. Sometimes, it may be worth taking on a little debt to get the business that excites you the most. For this question, a franchise coach can be an invaluable resource.

How quickly will you need income from your franchise?

Do the math. The most important thing is for your expectations to be realistic, so you can afford to start your business properly and get through the building phase.

Do you like following a system?

A franchise will provide systems for their franchisees. If this makes you uncomfortable and you’re the sort of person who prefers to march to the beat of his own drummer, this may be a stumbling block.  Learn what the system is and plan to follow it.  If you don’t expect to follow the system, then simply don’t buy the franchise.

How do you prefer to solicit new customers?

Starting your business often requires building a clientele — marketing your service to new customers. Some people are comfortable cold-calling or direct mail marketing, but others won’t enjoy that type of work. Many businesses, however, don’t require the owner to be a salesman. It’s critically important  you choose a franchise that doesn’t make demands on you as an owner that you’re not prepared to deliver.

You can never do too much research before buying a franchise. So after you complete your personal inventory, you can start your nitty gritty business research.

Dan Citrenbaum is a franchise coach and consultant to entrepreneurs, who helps people achieve their dreams as small business owners. He has a proven track record helping people select and buy a franchise or existing business. Contact Dan at [email protected] or at (484)278-4589 and view his company website at www.entrepreneuroption.com.

© Dan Citrenbaum 2019

The lightbulb goes off and you have the solution to the nine-to-five doldrums: Start your own business. And you’ve been planning your big career move ever since. Unfortunately, you’re still at the same desk, trying to come up with the perfect idea, some new undiscovered niche in the marketplace.

With that kind of thinking, you’ll be daydreaming at your frustrating job from now until eternity. There is no such thing as the perfect new idea. Who would have guessed a pet rock would catch fire?

Rather than look for the next best, new thing, you’re better off figuring out how you can add your unique talents in a well established market. One way to get going without having to invent everything from scratch is to match yourself with a good franchise.

While not all franchises are created equal, you can figure out which ones you should consider and which you should cross off the list.

I call it the one-two punch. 1) consult a franchise coach for referrals to franchise companies with a good track record of helping franchisees succeed, and 2) Read the franchise disclosure document (FDD), which will provide you all the information you need to complete a thorough due diligence. Here are a few pointers to help you get through what can be a long complicated document.

How to Navigate the Franchise Disclosure Document

The FDD consists of 23 Items. Focus most closely on:  
Item 1: The Franchisor
You’ll find the franchisor’s business history, where it is incorporated, and a general description of the business, including whether it has operated under other names.  
Item 3: Litigation
It’s best to stay away from companies that have a history of litigation – especially if the litigation is with their own franchisees.  
Items 5-7 Initial Fees and Investment Costs
You can learn exactly how much this operation will cost you. The breakdown will include your initial fees, royalty fees, estimated wages and other labor costs, training, estimated lease payments, estimated costs to furnish your office or store, signs, advertising insurance, etc. Remember, every new business has a ramp-up phase, and you have to be prepared to cover your living expenses during that period.  
Item 12 Territory
Some franchisors offer exclusive territories. You want to be sure that your market will be sufficient to allow you to make a good income.   Item 19 – Earnings Claim
Not a required item, but be aware that for those franchisors who do provide estimates, they may be affected by regional differences and other factors.  
Item 20 – List of Outlets
This is by far the most important item because it gives you the ticket to your best resource for information: the franchisees. You should interview as many as possible to learn how their business has worked out.  
Item 21 – Financial Statements
You can learn the financial condition of the company by reading their audited financial statements for the most recent three fiscal years. I recommend you have an accountant review these for any franchise you’re serious about purchasing.  

 When you get close to choosing a franchise, I you will want to consult an attorney, as well as an accountant to make sure the franchise agreement is favorable to your long-term success.  Then by all means get started and recharge your career!

Ready to make your dream of becoming an entrepreneur come true?
Get your free evaluation today!   Contact Dan Citrenbaum to help you create the career you’ve always wanted.   With a quarter century of experience as an entrepreneur and coach, Dan began the latest stage of his career in 2010 when he bought a franchise — which he calls “the best decision I ever made.” To find out how to start your own business with a franchise or buy an existing business, call Dan at [email protected] or at (484) 278-4589.  

© Dan Citrenbaum 2019

Lots of you do it every day, especially when it seems everyone’s on your case and you’re not hopping fast enough to please your boss. You begin to wonder: How can I get control of my own destiny and reap all the rewards of my labor?

Almost half of workers over the age of 35 want to branch out on their own, according to a recent survey by Harris Poll and CreativeLive (an online education company).

The obstacles sometimes seem enormous for older adults, ones who have picked up costly responsibilities along the way. Striking out on their own may sound too risky. They may not be certain they have the right skills for business ownership. The big question: How do I get started?

One way to lower your risk and help get you to a new and better career is to consider buying a franchise, which comes with a network of support to help you succeed in your new business. Another clear advantage of a franchise is the opportunity to talk to people already in the business to learn how they’re faring, how the franchise company’s systems work and whether they would do it again.

Five Easy Steps for Selecting a Franchise

1. Rev Your Engines

Make a list of your skills and experience. Then look into different franchises in which the franchisees seem to have particular success. Start matching skills to what the owners need to do in those businesses to see where you might have the best connection.

2. Research Your Selected Business Sector

Learn where the growth is, where opportunities abound, what your geographic area may be missing, and what economic indicators are showing. Maybe local school budgets have been cut and the area has a growing need for a professionally run tutoring business. Or maybe your region lacks adequate resources for senior care.

3. Contact a Franchise Coach

A coach can help you narrow down your choices to franchises that are well-tested in the marketplace and offer the best support system for franchisees. The coach can also help make sure your research is thorough and objective.

4. Talk to franchisors and franchisees

Get the Franchise Disclosure Document from franchisors and learn the financial history of the company, as well as its key executives, and receive the list of franchisees. Franchisees are your most important resource, because they will provide the lowdown on where the franchise company is strongest and where its system may not work so well.

5. Consult a Franchise Attorney

Attorneys who specialize in this market will help you understand the potential pitfalls in a franchisor’s contract and suggest ways to improve the fundamentals to help ensure your success.

Just like any new endeavor in which you want to be successful, your preparation is critical. Making a well-researched solid selection will go a long way to putting you on the road to becoming a successful business owner so you can take control of your career.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to create the career you’ve always wanted. As a Franchise Coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

©Dan Citrenbaum 2019

Do you spend most days at work stewing in frustration, thinking you could run the operation way better if only the higher-ups would listen. Why wait any longer to truly test your mettle? Especially since you can find a roadmap forward with a franchise.

Before you balk, there is as much variety in franchise operations as with any independent business. There’s so much more than fast food and automobiles. Some are better run than others and some would make a better match with your skills and experience.

This is why the most important step in the purchase of a franchise is all the work that comes before you ever sign any contracts. A franchise coach — whose services are free to you — can help guide you through a complete due diligence so that by the time you are ready to make a decision, you know exactly how much it will cost, what you can expect in the way of revenues and how exactly you will run this business.

You can find out all this information because franchises are required by federal law to disclose it in a Franchise Disclosure Document (FDD). While operating revenues are an optional item in the FDD, interviews with individual franchisees can give you a good idea of what you can expect.

What a good franchise offers you is an easy on-ramp since it comes with so many tools to help you get started. Read on to learn what you should expect from a good franchise company.

Five Startup Tools Offered by Franchises

Upfront training and ongoing support

Franchisors offer training because they want you to learn their systems. They have a brand and want you to be a great extension of that brand in the marketplace. You should make sure you get what you need to get you started. Some will offer as much as 50 hours of instruction upfront, plus more for you and your employees after you open your business. On top of that, you get ongoing support, someone to answer your questions as they arise in your new business.

Advertising/Marketing

A ready-made national advertising campaign should be available to you. Local marketing is also essential, and a good franchise should offer you plenty of assistance to help you get the word out about your new business — one of the most important steps to becoming successful.

Guidelines for setting up your shop

You will likely get a list of suppliers to help you get the equipment and inventory you need. The franchisor will have specifications on furniture, fixtures and supplies to purchase, as well as the number of employees you will need. If you don’t like these, you probably should find a different franchise.

Support on leasing

Many franchise companies will help you find a suitable location, as well as sign a lease, though you probably want to do your own research about your region and hire a real estate attorney of your own. A bad lease can be a significant burden on a new business.

A business of your own can help you rise to greater heights in your career. So take the first step today.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted.

With a quarter century of experience as an entrepreneur and coach, Dan began the latest stage of his career in 2010 when he bought a franchise — which he calls “the best decision I ever made.” To find out how to start your own business with a franchise or buy an existing business, call Dan at [email protected] or at (484) 278-4589.

© Dan Citrenbaum 2019

Get the Edge and Consult a Franchise Coach!

When shopping for a franchise, knowing how to separate the wheat from the chaff takes expertise. Consulting a franchise coach can help you ask the right questions and zero in on key issues that can mean the difference between success and failure.

While you will find a seemingly endless supply of information about franchises in any internet search, you can save yourself a lot of time and aggravation by consulting an expert who has made his or her career studying the ins and outs of what makes a great franchise.

And since one of the attributes of successful business ownership is having the wisdom to know when you should rely on the expertise of others, your first test comes during your research phase.

To be sure, there are some clunker franchises out there. But to understand how the best franchise operations work, you need to have some idea about what they should offer, and what your expectations should be. If you’re not careful, you could find yourself with a franchise with subpar training and worthless support that ends up costing you your business.

The bottom line: You want value for your money, and the costs can be significant. With the best franchises, the value far exceeds the cost.

A good franchise can provide you all the knowledge you need to have a successful business, unlike an independent startup, where you have to guess the costs and estimate the potential revenue stream. A franchise operation already has a proven system, developed over time with a successful network of franchisees who came before you.

Without exception, franchisors will tell you they have excellent training and hands-on support to help you with every facet of your new business. And some surely do. But their job is to sell you their franchise, so they may leave out the part about a recent turnover in their training staff that has left the program in disarray.

Of course, the best way franchisors can maximize their income is to create the best environment for their franchisees to succeed – spectacularly so. Unfortunately, this isn’t always the case, which is why the research phase is so important.

A franchise coach can help steer you to specific franchisors, based on a thorough assessment of hundreds of franchise operations over the years. Another important goal is to match a franchise to your basic skills and personal profile — so that you can make a good living and enjoy your work.

The Benefits of Tapping the Expertise of a Franchise Coach

A franchise coach can help you figure out:

• What type of franchise you should research — based on your interests, skills and personality
• How well the franchisees have been succeeding
• How to evaluate the FDD
• How to assess franchisees’ and franchisor operations
• How well the franchisor prepares franchisees in the set-up phase
• How good the franchisor’s training program is, which includes answering questions, such as: Do you connect well with the support staff? Do you like them? Are they hands-on? Do they know what they’re doing?

In addition, as you continue your research, a franchise coach can help you answer questions that arise along the way. And best of all their service is free to you since they are paid by the franchisor.

As in every endeavor, you want to capitalize on every advantage you have, so consult the experts and get the edge in your search for your perfect business opportunity.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484)278-4589.

© Dan Citrenbaum 2019

When shopping for a new business, lots of first-timers choose a franchise for its many benefits, from a well-tested brand name and marketing program, as well as lots of back room support and training to help new business owners succeed.

But you have to do your due diligence to make sure you select the company that best matches your goals. When it comes to preparation, there are no short cuts. You have to read the fine print before signing any contracts.

The good news is that Federal Trade Commission requires franchise companies to disclose a great deal of information to help prospective franchisees learn everything they need to know to make a good choice.

You want to get a copy of the Franchise Disclosure Document for each franchise you’re seriously considering. Franchisors are required by law to provide you a copy at least 14 days before you’re asked to sign a contract or pay any money. You can ask for the document in any format convenient for you.

A franchise coach can help you through the nitty gritty of this process. As you begin your preliminary research, here’s what you should look for:

Franchisor’s Background

You want to know how long the franchisor has been in business. What’s the competition like? Pay close attention to the general business backgrounds of the company executives and how long they’ve been with the company.

Litigation history

Has the franchisor been involved in any litigation with their franchisees? Have any of its executives been convicted of fraud or other violations of franchise law? Have franchisees filed claims against the franchisor? You will also want to watch for any prior bankruptcies among the executives’ histories. These would all be red flags to further investigate.

Initial and Ongoing Costs

This is critical information since you never want to find yourself short on funds for matters that were clearly part of the cost of operating your business. Costs will include continuing royalty payments, advertising, business promotions, operating licenses, supply costs, cost to purchase discretionary equipment, cost of compliance with local municipal ordinances, and insurance, among others.

Only by estimating your costs can you realistically compare franchise operations to see if you might be able to earn more profit with another company.

Restrictions

Franchisors may restrict from whom you may order supplies, what you may offer for sale and where you can sell. Each franchisor will have different ways of determining a territory, which is meant to protect current franchisees but may not be satisfactory to you. For example, Dunkin’ Donuts has territorial restrictions limiting some franchisees from also offering 31 Flavors ice cream.

Training

While franchisors offer training, you need to know who is eligible for training and who pays. Are new employees eligible? Are support staff available for ongoing support? Again, make sure you know all the costs.

Advertising

Franchises often are asked to contribute a portion of their earnings for advertising. Get the details on what the franchisor requires. What percentage of the advertising budget is spent in your area? Will local advertising amount to extra out-of-pocket costs?

Current and Former Franchises

Plan on talking to as many current franchisees as possible. Ask them what you will need to do to succeed. Also talk to former franchisees to learn what went wrong for them. Make sure you also ask financial questions, such as their total investment, including unexpected costs and how long it took them to cover their initial investment and earn a reasonable income. What are their earnings? Franchisees’ income might vary quite a bit, depending on geographic area and other factors.

Financial History

You want to make sure the franchise company is financially stable since you certainly don’t want the company to go out of business just after you invested your money. You also want to ensure the franchisor has sufficient money to supporting its franchise system.

For more information, check out the FTC’s website, which has published a consumer guide to buying a franchise at http://www.business.ftc.gov/documents/inv05-buying-franchise-consumer-guide.

With a thorough due diligence, you can feel confident your new business will succeed for the long term.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at [email protected] or at (484) 278-4589.

© Dan Citrenbaum 2019