After weeks of thinking about it, you’ve arrived at a conclusion: you were born to be an entrepreneur. Successful business owners share many of the same qualities, such as passion, drive, determination, and imagination. Is owning a franchise the right option for you?
Why Is Buying a Franchise Attractive?
If you want to open a business, there are three options. First, you can start from scratch. This means doing all the legwork yourself and learning critical lessons by trial and error. We’re not going to lie — starting a business with nothing to go on is hard work.
Door number two is buying an existing business location. This can work if the business has a great reputation and many clients, but it won’t come cheap.
Buying a franchise is an excellent solution that takes the strengths of these other options. You get access to a popular brand and incredible support. This can help you have greater success in launching your dream business.
What Is Franchising and How Does It Work?
Buying a franchise allows you to open a business using the brand name and resources of a parent company. Your location will sell the franchisor’s products and follow certain guidelines, but you’re in charge of managing day-to-day operations. If there are any trademarked business secrets, you get access to them.
What Are the Advantages of Buying a Franchise?
There are many advantages to being a Franchise Owner. Franchising provides incredible support, a proven business model, and an amazing brand. Here’s why these benefits matter:
1. In-Depth Management Training
It’s impossible to exaggerate the importance of business instruction. Training for Franchise Owners usually includes teaching you and your staff about administration, leadership, customer service, financial management, operations, and marketing. This gives you an edge against competitors.
2. Successful Business System
When you partner with a popular Franchisor, it takes away a lot of the uncertainty and stress that normally comes from opening a new business. You can see the financial results for yourself — the model works. Buying a franchise lets you avoid the mistakes other first-time business owners often make.
3. Trusted Brand Name
One of the biggest challenges of starting a business is getting potential customers to trust your business. Owning a franchise makes this process much easier. Since the brand is already well known, people remember positive experiences even if they’ve never visited your location personally. Before you know it, your store has a loyal following.
4. Significant Ongoing Support
Even with the initial training, you receive in how to own a franchise, you’re still going to have questions. What separates great franchises from other businesses is the training and support and ongoing assistance you receive. Whether it’s helping you select the right location, providing marketing advice or helping you outshine competitors, you should expect to always have someone knowledgeable by your side.
5. Turnkey Operations
There are many details for a Franchise Owner to take care of before opening day — such as applying for SBA financing — but you should receive assistance with virtually everything. Many Franchisors have dedicated support teams to help with real estate, inventory ordering, financing applications, and other details. Say hello to the easiest launch possible.
6. Attractive Discounts
Owning a franchise often provides access to inventory/ingredients at a sizable discount. This can save you a lot of money compared to what you’d pay as a solo business owner. Why the savings as a Franchise Owner? Since franchises consist of dozens of national locations, the brand can negotiate bulk discounts and pass on the savings to members of the “family.”
Following a proven system has an excellent effect on profits each month. Thanks to the business experience, support, and legendary products of an incredible franchise, you can hit the ground running. In a way, it’s like being a hit with the local market before you even open your doors. That doesn’t happen when opening a business from scratch.
How Can You Select the Ideal Franchise for Your Goals?
One of the most important decisions related to franchising appears before you sign the dotted line. Your choice of franchise has a big impact on how much you enjoy the process. Knowing how to buy a franchise can change your life forever in the best way. So what should you consider?
First, your skills. Specific owners are simply a perfect fit for certain franchises. For example, if you’re looking to get involved in the restaurant business, being a people person is important.
Next, think about your lifestyle. When you believe in the franchise’s offerings, it’s easier to stay passionate about running the business even after 5–10 years. This excitement can catapult the location to major success. Above all, you want to choose a brand that increases your happiness and meets your long-term goals.
What Should You Look for When Buying a Franchise?
Now it’s time to look at the details of your favorite franchise. You need to evaluate the fine print and make sure you’re investing your money in a winning pick. Here are five areas to look at:
There’s nothing wrong with asking about the total costs expected. You need to be comfortable with the amount of capital you have, and some luxury chains may simply be out of reach.
Always investigate a brand’s local and national reputation. Check on social media to see what your target market thinks. This reputation is key to building a loyal customer base.
Franchise Training Program
Make sure the brand provides enough training in how to start a franchise. Be careful of brands that seem cheap but want you to handle everything yourself. Training is one of the biggest reasons you’re franchising in the first place.
Investigate the franchisor’s Franchisor’s reputation for ongoing support. Ask to speak to other Franchise Owners. Successful brands are happy to put you in contact with their Franchise Owners.
While not 100% essential, having a network of Franchise Owners can increase the amount of guidance you get as a new business owner. This can also open up opportunities for referrals and increased sales.
While researching the brand, know that any serious franchise is also going to be evaluating you. The goal of this process is to build a successful partnership. When Franchisors and Franchise Owners have a great working relationship, it brings financial benefits for both parties.
Why Franchise a Nékter Juice Bar?
At Nékter Juice Bar, we’re always looking for entrepreneurs who are friendly, intelligent, creative, and passionate about healthy living. We’re completely revolutionizing the juice bar concept, and we’d love to have you by our side. How does our franchise stack up when it comes to branding and success?
What to Expect When Buying a Franchise
Owning a successful franchise is similar to managing your own business: It requires good planning, financial savvy, and hard work. The advantage is that a great franchise means having ongoing support and experienced entrepreneurs by your side.
What can you expect in terms of overall expenses and monthly operating costs? Some franchises require a sizable financial investment while others practically run themselves. Here are some general costs:
- Initial franchise fee: Every brand has a one-time franchise fee. Generally speaking, this amount is paid when you sign the franchise agreement.
- Royalty fee: This is the ongoing cost of franchising. Some franchises request a percentage of total revenue (usually between 2% and 10%), and others have a flat monthly fee.
- Rent or loan payments: If your franchise fits into an existing storefront, you may benefit from simply renting the location.
- Equipment leases: Every franchise needs some kind of equipment. Modern payment systems are also a must.
- Inventory costs: Some retail businesses have sizable monthly costs dedicated to inventory. Restaurant owners need to think in terms of ingredients, such as fresh produce.
- Payroll: The amount you set aside each month for payroll depends on the number of employees you have. A large store may have hundreds of employees, while an airport kiosk only needs a few.
- Working capital: Always set aside working capital in your operating budget, especially during the first six months to a year of business. This helps you adapt to anything unexpected while you get a feel for the local market.
- Advertising fees: Some franchises pool advertising fees. Others allow Franchise Owners to coordinate the campaigns that work best locally. Either way, plan on the money each month for marketing.
These costs help you analyze your available capital to determine what kind of franchise you can realistically afford. That’s why most franchises list net worth requirements. The objective is to ensure that you can pay yourself a worthwhile salary.
How to Tell if Owning a Franchise Is Right for You
Buying a franchise isn’t the answer for every business owner. Some entrepreneurs just don’t have the personality, or the desire, to be Franchise Owners. How can you tell if you’re a good fit?
First, evaluate your goals. Franchising means signing a binding contract. On the other hand, this model is a great way to make your entrepreneurial dreams into reality.
Next, focus on your personality. Owning a franchise means following certain ways of running things. Can you live with that?
Also, investigate whether the franchise requires special skills or credentials. Some brands are looking for Franchise Owners with certain college degrees or industry experience.
Finally, ask yourself whether you’re ready for leadership. Owners need to manage team members and make smart business decisions. Many brands look for Franchise Owners with past management experience.
Buying a franchise offers many advantages, but also serious responsibilities. However, for people who were born to be entrepreneurs, it’s hard to beat the franchise model.
Where to Find In-Depth Franchise Information
How can you find out all of this information about initial fees, estimated monthly operating costs, and projected profits? In the Franchise Disclosure Document. The FDD is your best asset to weighing the pros and cons of owning a specific franchise.
Many professionals recommend contacting a certified public accountant with experience in franchising. CPAs can help you understand the financials clearly. Always have a lawyer review the franchise agreement to make sure you understand all the provisions.
How to Start a Franchise Partnership
After reviewing your finances, goals, and skills, you’ve decided that buying a franchise is perfect. What’s next? Here’s how to buy a franchise from start to grand opening:
1. Meet the Franchise
Narrow down the list of franchises that interest you. If possible, go to a trade show where the franchise appears. This is an informal way to gather a lot of information. Once you’ve selected a franchise that feels like a good fit, express interest in becoming a franchisee.
2. Ask Questions
Meeting with a franchise representative is one of the most important stages. It’s essential for both sides to “test the waters,” so to speak. Prepare questions ahead of time-related to inventory costs, territory restrictions, expansion plans, and financing. Expect the representative to have questions, too.
3. See the Franchise in Action
The next step is something called “Discovery Day.” It allows you to see the franchise in action. Usually, you’ll visit an open location, possibly working there for a week or so. This lets you see more clearly what to expect.
4. Apply for Financing
Next, make sure you qualify for financing. Sometimes you need to look for financing yourself. Other franchises have relationships with lenders to streamline the application process.
5. Select a Location
The best franchises have a dedicated team to help you secure the ideal location. You want a place that is visible and appeals to your target customers. Some models popular with Millennials focus on renting restaurant space in supermarkets and airports.
6. Take Care of Details
There are a lot of details to handle over the next few months. These include getting permits and insurance, purchasing or leasing equipment, and selecting your team members.
7. Go Through Training
Get ready to travel to corporate headquarters for several weeks for a period of intensive training. This brings you up to speed with the franchise’s way of doing things, from marketing and accounting to brand products and management guidelines. Classroom training is best supported by real-world, hands-on instruction so you can practice what you’re learning.
8. Launch Your Location
Now for the most exciting part: Opening Day! This is when you unveil your new location to the world. The best franchises have a team to assist you with an unforgettable launch. Making a big impact on the local community has a huge effect on your customer base and profits.
Why Nékter Juice Bar Is an Excellent Choice
At Nékter Juice Bar, we make owning a franchise simple for potential Franchise Owners. You don’t need previous expertise in the restaurant business to apply, though management experience is important. Our team consists of California Franchise Owners and successful entrepreneurs, and we provide ongoing support and solutions that work in each local market.
The Nékter Juice Bar concept is simple yet powerful: incredible acai bowls, smoothies, elixirs, juices, and healthy treats with SoCal flair and fresh ingredients. People go out of their way to pick up our delicious offerings on the way home. The numbers don’t lie: Our Franchise Owners enjoy an average gross sales of over $950,000!
During the training phase, Franchise Owners receive over 80 hours of on-the-job training and 18 hours of classroom instruction. Our team helps you learn how to own a franchise from beginning to end. To take the first step, contact us to request an FDD.
We have a great reputation. Our Starbucks-meets-Whole Foods approach has caught the eye of working moms and dads, college students, fitness enthusiasts, teens, and other health-conscious people in growing markets around the country. It’s no surprise we snagged a spot in Entrepreneur Magazine’s “Franchise 500” and received the coveted “Best Buy in Franchising” award from Franchise Times.
Owning a Nékter Juice Bar franchise is a great opportunity for many entrepreneurs. Our model offers amazing training and support, a proven concept, and phenomenal growth potential. To request more information on how to own a franchise, contact our team right away!
Featured Image: Fizkes
Build a legacy of health and wellness by opening a Nékter Juice Bar franchise in your community. Visit our franchise website for more information.