Owning a business in Quebec can be a smart investment, but starting one from scratch can be difficult and sometimes a bit more trouble than many are able to deal with. That is why it is a good idea to consider buying into Franchise a vendre. It is still a lot of hard work but it is a lot easier than starting over from scratch.
When you buy into an existing franchise, the groundwork has already been laid for you. The system is designed to help you succeed and, if you have a good franchise, there is much assistance available to you along the way.
With that in mind, then, you may be wondering where you can find a good franchise to buy. Well, consider these things to make a more informed decision about the type of franchise you should invest in.
#1: CONSUMER DEMAND
Really, the first thing you need to look for is whether or not a franchise will succeed in today’s market. When you buy a restaurant franchise, for example, you need to examine whether or not consumers are interested and excited about eating that type of food or, more importantly, the type of food served by this particular franchise. Maybe there is not much demand right now, but is the area growing in a way that this franchise might find success in the very near future? Would there be healthy competition for your brand? How likely are consumers in this area to try something new?
#2: FRANCHISE FINANCIALS
After you have examined and analyzed the potential success for this franchise, the next step would be to look at the franchisor’s financial statement. The franchisor is the person or company who holds the sales rights to the franchise. Does this entity have a healthy financial statement? For example, can they stand on their own and operate independently without the fees paid by the franchisees? It is dutifully important to understand how responsible and involved the franchising company is with their outlets. Know the compensation schedule (what you are supposed to pay them and when; and thus, how much you keep) so you can weigh that against other potential investments you could be making.
#3: MARKET INTELLIGENCE
Along with money, does the franchisor also have an excellent means for researching the industry? How do they manage to keep up with trends and stay ahead of economic shifts? Even a franchise that is popular today can struggle to stay alive if the franchisor cannot anticipate the changes in the market.
#4: THE LEGAL AGREEMENT
After all is said and done, make sure that you understand word-for-word, the proposed legal agreement. Have a lawyer look over it and make sure to get clarification on anything that is not clear to you.
