If you could create your own fantasy board of directors, who would be on it? CO— connects you with thought leaders from across the business spectrum and asks them to help solve your biggest business challenges. In this edition, we ask two experts about how to choose the best franchise for you.
In this edition of “Ask the Board,” we’re pleased to feature Patrick Daniel and Isaac Phillips, owners of the flooring franchise Floor Coverings International of West Florida Panhandle. The duo shared their tips on how you can hone in on the ideal franchise for your unique situation.
Owning a franchise comes with many benefits, including brand recognition, training and support, and reduced risk. But how do you find the right one? Patrick Daniel and Isaac Phillips answer this question below.
Figure out what’s important to you
Ask yourself what you want your life to be like as a franchisor as well as how you envision the lives of your employees. Would you like everyone on your team to earn a living wage? Do you want weekends off? Are you looking for something that you can grow to two or three team members and offer a great salary, or are you hoping to own multiple units across a region so you can grow your team from there?
Review franchise disclosures
Take a close look at the franchise disclosures in detail, and make sure you understand the claims that franchisors have made and the requirements you may potentially be agreeing to.
If a franchisor is new and growing quickly but does not have a real track record, that is OK. However, you want to be sure that the numbers that are claimed as projections are backed up with proof and that you’re comfortable with both.
Find a franchisor that fits your ideal culture and values. While the business will be yours, it’ll be easier to operate a franchise if you agree with the franchisor’s day-to-day operations.
Patrick Daniel and Isaac Phillips, co-owners of Floor Coverings International of West Florida Panhandle
Pay attention to training and support
Ideally, you’ll go with a franchise that offers comprehensive training and support systems. Most brands have an initial training platform to get you started.
However, easy access to ongoing support as your business matures is just as important. If you find that support is a weak area from the franchise side, be sure it’s a strength of yours.
Consider culture and values
Find a franchisor that fits your ideal culture and values. While the business will be yours, it’ll be easier to operate a franchise if you agree with the franchisor’s day-to-day operations.
You may think that a product or service is amazing and will sell well in your market, but think twice if the corporation’s values are not aligned with your own.
Take an inventory of your financial needs
Project your financial needs in the first 24 to 36 months. Do your business goals support that?
If you are looking for a high initial growth curve from a top-end revenue perspective, your cash flow will likely be minimal. If you need immediate or quick cash flow, be sure that the franchise or system you choose can also support that.
Don’t forget to do your due diligence
Be thorough in your due diligence. Ask if it is OK to speak with franchisees that are not part of the franchisor's "preferred" list. If they balk at the idea, then you should dig deeper.
Speaking with franchisees at different stages of success can give you a look into whether people are succeeding with the help of the franchise or in spite of it.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
