A franchise is a business in which the owners, who are known as the franchisors, sell the rights to their business name, logo and model to third parties who are known as the franchisees. This is a very common way of doing business and most cities and towns are filled with popular franchises. There are a number of franchise opportunities in MN that are available.
Factors in Becoming a Franchisee
Those who are interested in franchise opportunities in MN should first consider whether or not they are a team player and are willing to follow the rules. A franchisee is both an owner and manager of the business so those who like to change the way things are done and tend to be too independent should seriously consider another form of self-employment.
Owning a franchise also requires adequate capital. In addition to meeting the total investments for the business itself, money is also needed for living and working capital. This means that funds are needed to cover living expenses well beyond the anticipated point of breaking even. Franchisees still need to pay their own rent or mortgages and eat while the franchise is developing.
The third factor to consider is to ensure that you are happy with that business before committing time, effort and money. The critical elements to a successful business are skill and capital but of equal or greater important is being able to enjoy and be proud of the business.
Working with a Consultant to Find Franchise Opportunities in MN
Looking for these opportunities can be an overwhelming task and a franchise specialist can assist from several perspectives.
A franchise specialist can assist with a self-assessment process to provide clarity in the goals to be achieved and the best choices available to accomplish these personal objectives. Then the specialist can refine those opportunities that best fit one’s needs and skill set and narrow down three or four franchise opportunities to better understand the relationship between the franchisor and franchisee and what the business will involve.
A specialist can also provide some guidance with finding a lawyer to assist with the numerous documents involved in the franchising process and work to put together a business plan and provide introductions to a bank to arrange the most attractive financing terms that will fit with the projected cash flow.
