7 Questions to Ask When You Explore Franchise Opportunities in California
In today’s competitive business world, it’s difficult to launch a successful company as a one-man operation. Far too often, entrepreneurs wind up broke and burnt out before their business ventures ever reach the point of profitability. Opening a franchise is a smart business alternative that allows you to build your own business with an existing brand. This gives you some instant credibility and a safety net of support when you face the inevitable challenges that rock every new business in the first few years. As you explore franchise opportunities in California, here are 7 questions you should ask to determine if the brand would be a good fit for you.
#1 – What Resources Do You Offer Franchisees?
Inquiring about resources and incentives is important when interviewing franchise opportunities in California. Some franchises offer intensive business training and ongoing support, while others basically give you the rights to use their brand name and logo with very little back up if things go south. At Burgerim, we provide franchisees in California with comprehensive training and full corporate support on a long-term basis. While you will be an independent business owner, you’ll have a whole team of Burgerim professionals cheering you on and working to help you succeed.
#2 – What Kind of Investment is Required?
The startup cost to open a franchise can range from just a few thousand dollars to millions. It’s important to get information on the full investment cost upfront and what is included in that price. Keep in mind that you will inevitably have additional expenses for real estate, renovations, printing, inventory, etc. Before you commit to a franchise, get a realistic look at how much money you will have to invest to get the business off the ground.
#3 – Do You Offer Financing?
Most franchise owners have to seek out financing to afford the start-up cost of their business. For some, this means taking out a traditional bank loan. Others may borrow from a retirement fund or a relative. In some cases, the franchise company will offer in house financing options. At Burgerim, we provide financing to all franchisees regardless of credit history. This is one of the ways that we stand out from other restaurant franchise opportunities in California.
#4 – How Many Franchisees Do You Current Have?
In order to learn if the company is truly successful, take time to investigate how many franchisees they currently have around the world. If the answer is one or two, you might want to wait awhile and see if the company can sustain their franchise model before you invest your hard earned money to join the team. At Burgerim, we have more than 160 locations worldwide across 8 countries. This speaks volumes to our successful business model and the potential for profit growth in California and beyond.
#5 – Are There Other Franchisees in My Area?
Find out if there are existing franchise owners in your city, county, and state. Where is the closest franchisee located? In some cases, it might be okay to be located in the same city if there are enough consumers to serve both businesses. But if you live in a small town, it’s probably not a smart move to have two of the same franchises competing for local business.
#6 – What Percentage of Your Franchise Locations Succeed?
This can be a difficult question to ask, but it’s critical to protect your interests as a new business owner. If the business model is truly successful, the franchise won’t have any hesitations in giving you the answer to this question. If there are a large percentage of franchisees that were unable to successfully sustain the business, then this is a major red flag that this is a franchise opportunity in California that you need to avoid.
#7 – Do You Have a List of Current Franchisees That I Could Speak To?
Finally, ask for references for other business owners who have worked with the company in the past. It’s a good idea to seek these professionals out and ask for their personal experiences in working with the franchise. What were their biggest challenges? What resources were most valuable? Finding this information out at the beginning can go a long way towards helping you establish a successful business with the same company.
Take these questions to heart as you interview franchise opportunities in California. As you have more in depth conversations with potential franchise options, you’ll have a greater understanding of which companies are a smart investment and which opportunities are best avoided.