Three Factors to Consider Before Buying a Franchise
Being a franchise owner is an incredibly rewarding experience, and there are plenty of things to consider prior to becoming your own boss and running your own business. Here are three key factors we discuss with our prospects prior to them joining Office Evolution.
1. Culture is Key
When I meet candidates at our Join the Ohana Day (Discovery Day for other brands), I read our core values speech. At the end of the speech I will say, “If you couldn’t wait for that to be over or if my message did not resonate with you, then you are in the wrong place.” Culture is that important to us. It is core to the success of our brand. I’m proud to say nearly all of our candidates sit forward on their chairs, smile, engage, and want to learn more about us.
A franchise system and a franchisor's culture are completely intertwined and inseparable. Many candidates focus only on the franchise system, only to find out later that the culture is just as important, if not more important. When you buy into a franchise system, you are buying into that brand’s mission and values, which is why it is paramount that you take time to speak with the franchisor and other franchisees about the brand’s culture. These conversations will help you see how you connect with others in the system and will provide perspective about what the brand views as important.
Our brand is about so much more than providing a flexible office space close-to-home for our members. It is about being there to support one another—from the corporate office to our business center managers, all the way through to our members. The idea of collaboration, compassion and support is in our DNA and a big reason why we were able to stay open and even expand during COVID-19.
Make sure the franchise you are partnering with doesn’t just say they have a culture, make sure their culture plays a role in everything they do, whether that is the onboarding process or how they handle customer service; ensuring you are a good fit with the franchise system is vital to starting off a business relationship successfully.
2. Choose a Franchise that Fits your Lifestyle
We built our model to fit in the lifestyle of our target candidates. Ours is a semi-absentee, single professional-employee, B-to-B, Monday-Friday, 8am to 5pm model. Our franchise owners are typically parents who are connected with their children and their community. They are seeking an investment that allows them to make money while taking care of what matters to them personally.
There are thousands of different franchise concepts and models to research prior to buying a franchise and your lifestyle is a major deciding factor for which franchise best fits you. How do you envision your lifestyle under your new franchise? Will you be stepping away or leaving your current job to run your new franchise? Do you like taking a hands-on approach and want to be involved in the day-to-day operations of your concept? Or do you want to continue working at your current job and have something that can provide you with some semi-passive income? Having clear expectations can help lead you to the right opportunity.
3. Choose an Opportunity that Supports your Financial Objectives
Let me be clear, our franchisees are not going to get rich overnight with our model. If you want fast cash, with a bit of risk, there are a lot of opportunities to consider.
Depending on your financial situation and goals, there are a plethora of factors to consider when looking at the financial aspect of owning a franchise. What are the initial investment costs? How will I finance my business? What are the inventory costs? How are royalty payments structured? All of these questions are important to answer by working with your financial planner and your bank, but it is also important to take into account how your money will be spent.
At Office Evolution, our concept offers franchisees a 93 per cent recurring revenue model. Since it is membership-based, there is a steady stream of income from the members at Office Evolution locations. Additionally, there are no major inventory costs since you aren’t having to stock food or keep specific products on hand. This cuts down on costs and allows your investment to work directly for you, rather than having to keep spending a certain amount each month for inventory.
Franchising helps thousands of people make their dream of business ownership a reality.
Consider these three factors to help ensure you are a good fit for the business culturally, financially, and for your lifestyle. By making sure the concept aligns with who you are as a person, you are taking the first step towards being a successful business owner.
To learn more about Office Evolution, visit: https://www.officeevolution.com/