When considering investing in a franchise, it is important to do all the necessary research into the company ahead of time. This is something I can’t recommend enough. Far too many individuals opt into a franchise based on brand recognition alone. We want to help you when opening your Samurai Sam’s® location. Start by getting these answers.
QUESTIONS ABOUT THE FRANCHISE
The franchise itself can answer some of these, while other questions will require some research in order to uncover answers.
- What is the franchise’s financial track record?
- How does it compare to competing franchises?
- How are franchisors trained and rewarded for success?
- How does it screen franchisors?
When looking for a potential franchise to invest in, knowing the financial background and track record of the company is a must. Some franchises are known commodities, which may seem like a good thing, but every company has periods of growth and decline. You want to time your investment wisely to increase your chances of potential success.
The franchise itself should provide all financial documentation. If it doesn’t, take it as a warning sign that something might be wrong. It’s prudent to validate the information using sources outside the company, too.
While the franchise overall may be successful, you need to determine what sort of profits the franchisor actually receives. This information should also be provided by the franchise itself. Contacting other franchise owners around the country and in similar demographic areas should provide additional insight.
Research the screening process to determine how much the company does to prevent poor management practices in individual stores. Even if a poorly managed franchise is three thousand miles away, its performance affects brand reputation. Likewise, proactive companies will ensure their great reputation by implementing an effective screening process.
One of the good things regarding Samurai Sam’s® is that there are not thousands upon thousands of stores throughout the country. This makes identifying a market area easier. However, other franchises come with exclusive territories. This can also come with exclusiveness of the given area. While the company can provide you with this information, you may need to look into potential competition in the area yourself. Strong competition may make opening a new franchise branch difficult.
CONTRACT AND FRANCHISE ASSISTANCE
When you open a franchise you will sign a contract with the head company. This includes details regarding royalties or fees, information on how to terminate or renew the lease, plus sales quotas you are expected to meet. Compare the fees with similar franchises in order to determine whether this is the right fit. From there, you should also look into how the company supports franchisors to help them exceed quotas.
We hope the answers to these questions will lead you to open a Samurai Sam’s franchise of your own. Got your checklist? Give us a call.
©2017 Kahala Franchising, L.L.C. All rights reserved. The information provided herein is for informational purposes only and is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise; nor is it directed to the residents of any particular jurisdiction within the U.S. or elsewhere. The following states currently regulate the offer and sale of franchises: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, and WI. If you are a resident of one of these states, or of a jurisdiction that has similar requirements, we will not offer you a franchise until we have completed the applicable registration or obtained the exemption from registration, and completed the applicable disclosure requirements. Regardless of what state you reside in, an offering can only be made by a franchise disclosure document.