Which franchise to buy: key factors to get it right

October, 31 2022

A franchise is a type of commercial contract whereby one company (franchisor) grants to another (franchisee) the right to market certain products or services within a specific geographical area and under previously agreed conditions.

This business model offers certain advantages for entrepreneurs. To begin with, franchises don't require as much initial investment and they tend to grow faster than other types of businesses since the brand under which they’re working with is already known.

Discover how to open your own business

In addition to lower commercial and financial risk, franchises offer efficient management from the point of sale, and their products and working methods are tested, which reduces market risk.

Although we find ourselves with a good alternative to start a business, sometimes we don't know which is the best option or which franchise to buy.

Here are the keys to achieve it.

1. Activity type

Choosing a franchise depends on the sector in which you want to start a business. 

This system is present in a wide variety of activities, including catering, food and beverage, logistics and transport, sports, beauty and wellness centers, services, etc. 

You should make the decision with no rush, informing yourself of all the possibilities. 

Your own professional experience will be key to choosing an industry in which you feel comfortable.

 

2. Financing options

If you' re thinking of opening a franchise, you' ll find several financing options.

At Jeff we democratize access to entrepreneurship by reducing start-up costs through various services. A good example of this is the help we give to franchisees in executing all initial launch marketing. Ultimately, we seek to give you more economic flexibility, so that you can focus on your training and the necessary procedures to open your business, and making the financial part easier for you.

 

3. Investment

One of the main factors in choosing a franchise is the amount of money you're prepared to invest. 

The initial investment to open a franchise is always lower than to start a business from scratch. 

At Jeff, we reduce this amount so that our entrepreneurs can start their project in a more accessible, quicker and more profitable way. We do this not only by supporting them from the beginning, but also by creating optimized business models and simplified costs (less personnel, less machinery, ...).

Why? Because we know that investment is one of the main factors in choosing a franchise and because we are committed to the long-term growth of your business. 

 

4. Success stories and franchisee experiences

One of the best tips for choosing a franchise is to value the experiences and opinions of other franchisees and customers who have bet on that brand.

These testimonials can give you some clues on how to choose a successful franchise with Jeff.

 


You can also consult other franchisees on metrics, performance, training, education, know-how transfer, etc.

5. Legal advice

Before embarking on this business venture, it’s advisable to get advice on how franchises work and on the rights, commitments and obligations that you’ll have.  

We recommend that you consult with the franchise to avoid problems in the future.

 

6. Premises and location

The success of a business is closely related to its location. And, although it's the franchisees who usually choose their premises, at Jeff we support them in finding the best option.

As part of our consulting services, we distribute the zones so that our premises do not compete with each other.

In addition, we have tools and methodologies to evaluate if your location is optimal according to the type of business.  The parameters we take into account are pedestrian flow, size of the premises, required licenses, etc.

 

7. Alignment with your principles

Another factor in choosing a franchise is that you identify yourself with the brand you are going to represent. You may not always do so with their products, but you will always do so with their corporate values.

Think that you are going to dedicate a great deal of your time, energy and other resources to your new project, and that feeling identified with the franchise will be a great help.

 

8. Determine the expectations of the new franchise

How you choose a successful franchise is related to the expectations you have placed on your business.

It is essential that you be clear on the fact that you are going to become an entrepreneur under the umbrella of a brand. 

Nor should you forget that starting up your franchise can be a real professional revolution.

We recommend that you ask yourself questions such as:

  • Why do you want to invest in a franchise? 
  • Is your objective self-employment or is it a long-term investment?
  • How much time are you willing to invest in your new business?
  • What kind of tasks do you want to perform?
  • How long do you want to recover your investment?

 

How does Jeff respond to all this?

Jeff is a service platform created for the well-being of its users. 

We have more than 2,000 franchises worldwide (present in 43 countries) and have developed our business model based on technology and innovation.

Our stores are designed to maximize productivity and offer the best service in a pleasant environment. 

In addition, we have an exceptional online and offline marketing team that facilitates the positioning and promotion of businesses under our brand. 

 Want more reasons to choose us?  Find us on our site.

Discover how to open your own business

Javier Pelayo
WRITTEN BY
Javier Pelayo
SUBJECT
Franchising 101
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