Buying a franchise is an incredible way to cut your teeth in the field of entrepreneurship. However, you need to do your due diligence and ensure that you join a reputable company that is rooting for your success. If you’re thinking of starting a painting business, you’re better off buying a well-known franchise. Purchasing a franchise lets your new business hit the ground running because you get to ride on the reputation of a successful brand. People take immense pride in their homes. As such, they tend to retain the services of reputable companies. To harness the advantages that come with such a move, you need to take a few precautions.
Understand your personality
If you’re the kind of person who likes coloring outside lines, you probably won’t have a good time with a franchise. Franchisors go to great lengths to create a signature brand that makes it easy to recognize their products and services. Therefore, they have a set of rules and procedures they need all franchisees to follow when operating under their brand. Going outside of these guidelines is unacceptable; it could lead the revocation of your license.
Do your homework
It’s only natural that franchisors are quite protective of their brands. That is expected because building a successful brand takes an inordinate amount of effort and resources. As part of the franchising agreement, you’re required to abide by a code of conduct that is meant to promote and protect the brand image. Unfortunately, some of the franchisors’ efforts to project a particular image can hurt or cause you to incur hefty losses.
It’s in your best interest to identify these issues before committing to a deal. For instance, a franchisor that requires frequent and expensive modification to the stores doesn’t have your best interest at heart. Having to for such remodels eats into your profits and can leave in a precarious financial position. The same case applies when a franchisor forces unnecessary equipment upgrades.
These are some of the critical issues that you need to dig into when buying a franchise. Looking through the franchisor disclosure document (FDD) gives you great insights. The document contains a list of all the legal issues the franchise has had to deal with, including those brought about by franchisees. If such problems are rampant within the chain, you’ll be wise to keep looking and give it a hard pass.
Retain expert help
Most franchises in the house painting sector range between $40,000 and $200,000, which are a significant amount of money. Therefore, you would need to take every precaution to ensure that you’re getting the best value for your money. It would amount to a colossal mistake to buy a franchise just because you like their products and services. You need to see it for what it is—an investment.
Getting a seasoned expert to help you with the search process guarantees you great results. They can help match you with a business that will match your interests while allowing you to turn a tidy profit. They will also ensure that you understand the legal requirements as outlined in the FDD, which might contain some tricky legal clauses.
Buying a franchise is a tremendous way to gain traction in the lucrative house painting sector. It allows you to ride on the reputation of your parent company to grow your sales and market presence. However, you need to pick a credible brand from the get-go.