Open a franchise

Choose your franchise in five steps

Posted on 04/09/2019

If you want to enter the business world and you're thinking about buying a franchise, we recommend you follow these steps to select a successful and growing potential business.

What is a franchise?

Franchises are a business model that every day takes more strength in our country. It is a contract in which the owner of an existing company grants the franchisee an operating license to work with his brand.

As an entrepreneur you are going to buy the rights to use a brand, therefore, you must work under its guidelines so as not to change the quality of the product or service.

Find franchises for sale in Colombia

With this in mind, the steps to choose between franchises for sale are the following:

1. Select the franchise sector

There are multiple franchise options for sale, so choose a sector that you are passionate about. You are going to devote much of your time to the business and that you work motivated will depend on the taste for the brand.

Also, think if you want a product or service franchise.

Read also: Responsibilities of a franchisor

2. Ask about its trajectory

It is important that you know how many years the brand has been in the market, the number of premises that it has in operation and if it has had to close some.

This will allow you to have an idea of your market positioning and the results that you are going to have, as you are finally buying that experience.

3. Know the brand image

For being an already constituted company it should has a recognition at regional, national or even international level. It is important that you know it and that you seek to maintain brand positioning and improve it.

Get advice from an expert here

4. Find out your future projection

Keep in mind that this is a long-term contract, so ask about innovation strategies, business development and brand expansion plans.

Read: How to know if a business is profitable

5. Keep in mind your budget

When buying a franchise you must contemplate various expenses: the entry fee, the adequacy of premises, furniture, an initial inventory, hiring employees, among others.

You must have the necessary capital to bear these costs and be able to move the business forward.

There are low cost franchises or cheap franchises, in which the entrance fee is cheaper, so the investment would be less. It is worth clarifying that this does not mean that the return will be lower, in fact, it may be higher than the franchises with the highest investment.

 

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