Investigating a Franchise - Valenta Franchise

January 16, 2020by Valenta Franchise

Buying a franchise does not remove the risk of failure and thoroughly researching and evaluating a franchise before you buy it can play a huge role in determining its success.

The first step would be to determine the different types of franchises available and this can be done by:

  • Reading franchise directories
  • Reading articles and ads in franchise business publications
  • Attending franchise exhibitions and tradeshows
  • Researching on the internet

Once franchises have been shortlisted you need to evaluate the strength of the franchisors. You can go about this by:

  • Evaluating the history of the franchisor
  • Seeking professional legal advice regarding the franchise disclosure document and franchise agreement
  • Interacting with existing franchise owners

Key Criteria for Selecting a Franchise

While deciding on which franchise to purchase there are a number of factors to take into consideration including:

Costs

  • How much will you have to spend before you being to see profits from a particular franchise?
  • Do you have the necessary finances to purchase this franchise?
  • Will the profits it generates be worth the time and effort?

Your skills and talents

  • Do you possess the requisite skills to develop the franchise successfully?
  • Are your business skills developed enough to manage the franchise?

Product/service demand

  • Does the franchisor’s product/service have enough demand in the prospective area of operation?
  • Is the demand consistent or seasonal?
  • Is there scope for growth in demand in the future?
  • Will the product/service have repeat customers?

Competition

  • How many competitors operate in the prospective area including other franchise owners?
  • How established is the competition?
  • Is there any variance in the competition’s offerings?
  • Are there any niches in the market that you can capture?

Brand name

  • How well known is the franchisor’s brand?
  • Do they enjoy a reputation for providing a quality product/service?
  • Is there a lot of negative comments and complaints against them both online and offline?

Training & Support

  • What is the level of training and support that the franchisor provides?
  • Have the existing franchise owners found the level of support and training satisfactory?

Franchisor Experience

  • Has the franchisor’s business existed long enough to have established the level of business strength that you are seeking?

Expansion Plans

  • What are the expansion plans of the franchisor and do you find them to be feasible?

 

We now offer budding entrepreneurs an exciting franchise opportunity with our unique outsourced staffing franchise. To know more why you should invest in a Valenta franchise click here.

Valenta Franchise

Valenta BPO is a service provider for business process outsourcing, working with hundreds of companies world-wide to improve performance, whilst reducing costs. As a Franchise Partner you have the opportunity to work with local businesses, offering a range of services including outsourcing, process consulting and digital transformation.

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Specialists in Outsourcing Solutions, Process Consulting and Digital Transformation services

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