Factors to consider when choosing a franchise
- Friday, April 13, 2012
Owning and operating a franchise is a large responsibility, but it can be less demanding for individuals if they choose the right one for their skill set and goals. There are several different franchises that frequently offer individuals the small business opportunity of managing a company. However, some prospective buyers make the common mistake of only looking at the franchise features when deciding on which business to buy. There are other factors that may drive their decision, so it's important to examine the full picture before making a choice.
First and foremost, individuals should consider the demand for the franchise's products before signing on to operate the business. In some cases, demand may be seasonal, while in other instances, franchise products may simply be a fad and do little to promote consistent sales. Low demand for products can result in low profitability, frequent cash flow issues and low employee retention that can make owning the company stressful and less lucrative for individuals.
Second, prospective buyers should also examine market competition for the franchise's products and services. Not only is it important to know how competitive the local market is, but also the level of competition on a national scale. If chains are not doing well, the entire operation may start experiencing financial problems. In addition, buyers should consider the accessibility of the franchise's products versus that of its competitors. For example, if two franchises sell similar products, the one that allows customers to shop both in-store and online may have stronger sales and a larger customer base than the other with only in-store facilities.
Lastly, adults should consider the strength of the brand name when purchasing a franchise. Reputation is everything when it comes to attracting customers, so adults who choose a franchise with a recognizable and credible brand may have more success than those that choose obscure companies. Owners can build up a franchise's brand name through strong customer service and quality products, but they may be required to fuel more resources into advertising and marketing. In addition, adults should determine what the parent company's stance is on marketing the franchise to ensure they are not in breach of their contract if they launch these types of campaigns.
The Liberty Tax Service franchise opportunity is appealing to a diverse America, ranking highly for its affordability and potential. Entrepreneur magazine has ranked Liberty Tax Service on its “Franchise 500” list of best franchise opportunities since 1998. Liberty Tax Service is the only tax franchise on the Forbes magazine’s “Top 20 Franchises for the Buck (2012)." Our tax franchise is an affordable and viable business choice. Each office provides thorough, computerized tax preparation coupled with superior customer service. For the best small business opportunity in the income tax franchise industry, choose Liberty!