So you think you’re ready to own a franchise in the Philippines? Hold up for one second! Make sure you have the positive answers to the questions below first before you do:
Are You Ready for the Responsibility?
Franchising is not easy. In fact, you may need to work more than ever before. This is because managing it takes 7 days a week; so you’ll quickly see the normal 40-hour week turn into a 70-hour week. You will also need to be hands-on to run it well. This means dealing with upset customer, cleaning your own story, hiring and training employees, etc. The myth that you can just sit back and relax with a franchising business is simply not true.
Will You Enjoy It?
A franchise is like running a business of your own; but just with the permission of the franchisor to use their name. So you have to choose a company whose service you’re really interested in. This way, you can run it for a long time without getting sick of it and enjoy the returns.
Are You Willing To Follow the Franchise System?
In order to be successful at franchising you have to be willing to follow the rules of the franchisor. It is his business, after all, and you are merely representing him. Thus, you have to follow all the guidelines he provides; most especially the ones about branding. If you look like you’re a part of the bigger unit that customers trust, then they will also trust you.
Do You Have People Skills?
You must be able to maintain good relationships with the franchisor, follow franchisees, your employees, and your customers. Having a bad relationship with anyone will make the franchisor look bad, and he can choose to drop you.
Can You Afford It?
This is obvious. The franchisor can give you a rough amount of how much it will take to start, but there will be other costs such as transportation fees, salaries, rent, etc. that you also have to take into account. Basically, you need enough capital to run it until it become profitable.
Have You Read All the Legal Documents?
In every franchise, there will be a disclosure document. This is a vital document that you need to study well; consult your lawyer if you have to. It contains relevant information about the franchisor and your terms. Thus, it will dictate your relationship with the said franchisor. Be sure you don’t sign anything you don’t agree with.
Does Your Franchise of Choice Have a Good Record?
This is not just how popular the franchise is. You have to see for yourself how profitable the business actually is. The numbers of this is usually on the disclosure document as well. But you can also hire an accountant to do a financial analysis of the company for you.
Are the Franchisees Happy?
Also in the disclosure document is a list of all the current owners of a company’s franchise business. It will be worth it to contact them and see if they are happy with owning a franchise.
Do You Like the Franchisor And/Or the Staff?
You will be working with your franchisor for years so you need to be able to rely on each other through everything.
Are You Supported?
Like stated above, it will take a lot of your time; for 70 hours a week or more. Thus, you have to talk to your family and friends and ask for their support. You will have a difficult time balancing your life without it.
As you can see, it takes more than just money to be able to manage a franchise. You need dedication, intelligence, support, and people skills. If you answered yes confidently to all the question above, then you are ready to set up your first franchise in the Philippines.
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